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U.S. Senator Maria Cantwell Introduces Legislation S. 2693 – The Women’s Small Business Ownership Act of 2014

Posted on by NAWRB

Bill would improve access to lending, business training and federal contracting for women-owned businesses

Senator: ‘This legislation will help break through the 21st Century glass ceiling’

WASHINGTON, D.C. – U.S. Senators Maria Cantwell, Chairwoman of the Senate Committee on Small Business and Entrepreneurship, joined Senators Ben Cardin (D-MD), Jeanne Shaheen (D-NH), Kirsten Gillibrand (D-NY), Tammy Baldwin (D-WI), and John Walsh (D-MT) in introducing legislation this week aimed at giving women entrepreneurs equal treatment when it comes to starting and growing their own businesses.

The “Women’s Small Business Ownership Act of 2014” (S. 2693) would improve access to lending and increase business counseling and training services for women entrepreneurs, and give women-owned businesses the same level of access to federal contracts as other disadvantaged groups.

“Women make up half of the population, and we have a lot of ideas that could become great products and spur our economy,” Cantwell said. “This legislation will help ensure women entrepreneurs get the right tools they need to turn those ideas into new businesses and create jobs.”

The legislation adopts recommendations from a recent Senate Small Business Committee report that showed significant barriers for women looking to start or grow their own business. The report highlighted how women-owned businesses represent a $3 trillion economic force and support 23 million jobs, but still face significant barriers compared to their male-owned counterparts.

Women entrepreneurs account for just $1 out of every $23 in small business lending, despite representing 30 percent of all small companies. They are also more likely to be turned down for loans or face less favorable terms than men, according to the July 23 report, 21st Century Barriers to Women’s Entrepreneurship.

To address those gaps, the legislation would:

  • Expand and improve the U.S. Small Business Administration (SBA) Microloan and Intermediary Lending programs to reach more women borrowers who need up to $50,000, as well as reauthorize the SBA Intermediary Lending program – now a pilot program – to provide more women access to loans between $50,000 and $200,000. The legislation would allow Microloan lenders to increase lending capacity from $5 million to $7 million and improve the program to better meet borrowers’ needs through more flexible terms and expanded technical assistance. Women often face difficulty in getting right-sized loans that fit their needs, according to the report, and this will help fill a gap not met by traditional private lending. The Microloan program targets new and early-stage small businesses as well as borrowers with limited credit history who can’t receive financing from a traditional lending institution.
  • Allow sole-source contracting for federal contracts awarded through the Women-Owned Small Business Federal Contract program, which would put women-owned businesses on equal footing with other disadvantaged groups in the contracting process. The legislation would change current law, and aims to help the federal government meet its goal of awarding 5 percent of contracts to women-owned businesses – a goal that has never been reached since it was established by legislation 20 years ago. When this goal is not reached, women-owned companies miss out on $4 billion in federal contracting opportunities each year.
  • Increase funding for the Women’s Business Center program to expand and improve counseling and training services to reach more women entrepreneurs, especially in low-income areas. The program, overseen by SBA’s Office of Women’s Business Ownership, issues grants to nonprofits that provide these services. The centers assist 150,000 clients annually, and helped women to access more than $25 million in capital in fiscal year 2013. The centers help address the unique challenges women entrepreneurs face, such as less capital to invest and responsibility for child care or elder care. The legislation would reauthorize the program through 2019 and nearly double the annual funding authorization. It also would establish clear metrics to measure each center’s success.
  • Require data on women-owned small businesses by establishing a 2015 deadline for an SBA study to identify industries in which women-owned small businesses are under-represented. The original deadline was 2018.

“Small businesses are at the heart of America’s economic engine. We need to ensure that our women entrepreneurs have the right tools available to help them succeed,” Cardin said. “I’m proud to support the Women’s Small Business Ownership Act, which gives women a fair shot at helping improve our economy and strengthen the middle class through small business ownership.”

“Women are an essential part to growing our economy and creating jobs, but they are wholly underrepresented as business owners and contract and loan recipients,” Shaheen said. “By addressing the challenges women entrepreneurs and business owners face, we will give women, job seekers and our economy the tools they need to grow and succeed.”

“Our economy desperately needs to grow more small business start-ups,” Baldwin said. “This legislation invests in job creation, supports our American entrepreneurial spirit, and will help strengthen the economic security of women and their families.”

“This bill will ensure that women entrepreneurs have access to capital and opportunity,” Walsh said. “By making sure today’s leaders have the resources to start their own businesses, we will encourage the next generation of entrepreneurs to pursue their goals, strengthening Montana’s economy and creating jobs.”

“Small businesses are the backbone of our economy and the most powerful job creators we have,” Gillibrand said.“And the fact is, women are increasingly the new family breadwinner. Women are the primary income earner for a growing share of homes across America. The key to a growing economy, and the key to an American middle class that is built to thrive in the 21st century is women. When we equip more working women with the tools and the opportunities to achieve their best in the economy, and their best for their family, that’s when America’s middle class will thrive again. Without a doubt, if given a fair shot, women will be the ones who ignite our economy and lead America’s middle class revival.”

The Women’s Small Business Ownership Act has received strong support from key stakeholders including Women Impacting Public Policy, the Association for Enterprise Opportunity, the Association of Women’s Business Centers, U.S. Black Chambers, Inc., the U.S. Hispanic Chamber of Commerce, the National Venture Capital Association, and 32 community development organizations from 20 states.

-Press Release from U.S. Senate Committee on Small Business & Entrepreneurship

New Research Shows Funding Challenges Persist for Women-Owned Businesses

Posted on by NAWRB

The National Women’s Business Council (NWBC) released a new research report outlining the differences between men and women business owners, regarding the scale of business growth, amount and sources of financial capital, and the relationship between the two. Unfortunately, the statistics on funding for women-owned businesses, whether it concerns bank loans, angel investments, or VC funding continue to discourage. As the government’s only independent voice for women entrepreneurs, the NWBC’s two-fold mission is to conduct and support groundbreaking research that provides insight into women business enterprises from startup to success, and to share the findings to incite constructive action and policy. To that end, the NWBC saw the need tackle the thorny issue of funding and women owned businesses once again. The NWBC just released a new research report looking at current trends in female entrepreneurship and funding with an eye towards spurring discussion and finding solutions. Here are some of the most salient highlights from their work:

Access to Capital and Women Entrepreneurs
Access to capital continues to be a major issue for all, but especially for women entrepreneurs. The NWBC research suggests there is a direct correlation between access to capital, and company growth in terms of employment for both men- and women- owned businesses: women-owned firms exceeded their growth expectations, while men-owned firms had much greater growth in revenue.

Men-owned firms used significantly more capital than women, particularly with respect to equity from external sources such as venture capitalists and angel investors. Only 20% of all angel-backed companies were women-led in 2013. The NWBC’s research concludes high growth women-owned firms may be an underutilized tool for economic growth; increased access to capital is important because more money for the business will undoubtedly maximize their potential to contribute to the economy.

Overcoming The Fear Factor
When it comes to broadening the pathway to success for women business owners, women who are sole owners should consider finding a business partner who has previous startup experience. The NWBC’s research findings suggest firms with team ownership and/or owners with previous startup experience typically have higher amounts of capital and were more likely to have high growth potential. This research also revealed women-owned firms were also less likely to apply for credit when needed because they feared being turned down.

Anecdotally, many successful business owners were rejected repeatedly by banks before ultimately obtaining a loan. It is important for women to ask, and to keep asking. From the standpoint of risk aversion, a number of studies have similarly identified the fear of failure as a major impediment to the launch and growth of women-owned firms. For example, at NWBC’S March 2014 public meeting, Divya Nag—one of STEM’s youngest woman entrepreneurs—discussed Stanford’s StartX accelerator. She noted that only 5% of founding teams with women reapply when rejected as compared to 65% for all-male founding teams. The NWBC concludes that it is essential that entrepreneurs believe in their product, be able to communicate how it fulfills an unmet need in the market and continue to tell that story despite rejection.

Beyond the Boys Club: Reasons Men Receive More Capital
Research and other supporting research show, men and women approach debt differently, including the application process. Since women had lower growth expectations than men, it is possible they pursue less capital at the outset. Also women are more likely to have characteristics that are associated with lower amounts of capital in general—these include less previous industry experience, less previous startup experience, and lower credit scores, being a sole owner, and being home-based. However, these trends occur even among women-owned firms with high growth potential. One of the biggest differences seen was with regards to the amount of outside equity used. The presence of women is notoriously low on the investment side, e.g. as angel investors. Increasing women’s presence on the investment side (e.g. as angel investors) might help ameliorate some supply-side issues.

The Role of the Banks, Incubators and Accelerators
There is substantial opportunity for financial institutions to ramp-up their efforts to target and increase lending to women entrepreneurs. The NWBC concludes that one particularly effective strategy to maximize the potential of high growth oriented women entrepreneurs would be incentivizing accelerators and incubators to address the specific needs of and support women entrepreneurs. In addition to financial resources, this would allow women to get the tangible startup experience they need, the help with the business growth planning process and offer the added benefit of social networking—possibly resulting in team ownership.

Tackling the Problem on Both Fronts
Ultimately, it looks like there is both a demand-side and supply-side issue. It’s important for women business owners with high growth potential to set themselves up for success financially—but also for institutions and individuals offering financing to work with growth-oriented women to maximize their potential. The NWBC would like to see more women entering the investment side, as angel investors or as part of a screening committee at a venture capital fund.

There is no doubt that great strides have been made in the women’s entrepreneurship movement, but there is clearly more work to do. Change or action doesn’t happen without impetus. If we continue to build on the progress that has already been made women, women-business owners and the economy as a whole will benefit tremendously.

“New Research Shows Funding Challenges Persist for Women-Owned Businesses” was originally published on ProjecteEve.com.

The National Women’s Business Council continues to be a leading voice in advancing the women’s entrepreneurship agenda with a strong focus on providing key insights and solutions to increasing economic gains for women business owners. The NWBC has identified four priorities: Access to Capital, Access to Markets, Job Creation & Growth, and Data Collection. The NWBC will be highlighting the challenges and opportunities for women entrepreneurs through several research efforts, including: undercapitalization as a contributing factor to business failure; Supplier Diversity Initiatives and Supply Chain Analysis; and Women’s participation in accelerators and incubators.

California Hispanic Chambers of Commerce Annual Convention (CHCC)

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Entrepreneurs, advocates for small businesses, community leaders, and government officials were all present at the California Hispanic Chambers of Commerce Annual Convention (CHCC) in Garden Grove, California. The convention celebrated the history and triumphs of the CHCC while establishing a strong dialogue between the Hispanic business community, business advocates, and government members.

From an author to a National Director of a government agency, panelists and speakers came from a diverse range of backgrounds. Some featured speakers included Nely Galán, Media Entrepreneur and Founder of the Adelante Movement; Antonio Gonzalez, President of SVREP and WCVI; and Maria Salinas, Chairwoman of the Board at ProAmerica Bank. All workshops and panels at the convention were free and open to the public. The main workshops were divided into two groups: Procurement and International Trade. Attendees filled the seats for both groups of presentations as the panelists presented their in-depth PowerPoint presentations.

To further promote business success, the convention featured a procurement matchmaking session with participation from top companies such as Southern California Edison, Wells Fargo, Verizon, and State Farm. Attendees had the opportunity to view the business profiles of the companies they were matched with before scheduling a meeting. The meetings established connections between attendees and their matched companies so that a future follow-up could be secured to pursue contracting opportunities.

With the strong advocacy for the Hispanic business community, it was fitting to highlight real life business success stories during the Business Success Stories Live Luncheon sponsored by Kaiser Permanente. Hosted by celebrities Liz Hernandez of Access Hollywood and actress Ana Ortiz, the luncheon was a motivational way to inspire attendees to maintain their determination no matter the circumstances.

The Annual Convention wasn’t completely relegated to business workshops and presentations though. The CHCC added elements of fun and excitement with the Latina Pavilion, and awards ceremonies followed by various forms of entertainment, which created a loud and lively atmosphere. The Latina Pavilion featured a panel of successful Latinas who provided their perspectives on life, careers, and accomplishments. The Pavilion also showcased a fashion show and Biz Expo, which featured over 70 exhibitors and opportunities for networking.

The final two days of the convention concluded with a White Party celebration, CHCC Awards Gala dinner, live entertainment from popular comedian Felipe Esparza, and the Abel Sanchez & Si Se Puede Band, which features musicians from legendary bands such as Malo, Tierra, and Tower of Power. The live entertainment pumped up the crowd as the CHCC Awards honored recipients of the Latina Hall of Fame Awards and Regional & Statewide Hispanic Business Awards. The CHCC Annual Convention was a success that empowered the Hispanic business community with its lively blend of educational and entertaining sessions.

2014 Florida Realtors Conference

Posted on by NAWRB

The focus of the 2014 Florida Realtors Conference was productivity, profitability, and professionalism for the more than 2,500 Realtors® that attended in Orlando. In addition to informative training sessions and countless networking opportunities, the conference included a lively Carnaval theme with a concert series that had bodies moving and hands clapping. Attendees had the opportunity to sit-in on more than 30 education sessions, some of which were attended by NAWRB Member Renee Marie Smith, Esq.

A Session Recap by NAWRB Member Renee Marie Smith, Esq.
When Dodd Frank passed, many of us were scratching our heads trying to understand its impact. The Education Session on Dodd-Frank—Why Washington Made Us Change, which included panelists Grant Simon, Dana R. Ward, Michael E. “Mickey” Godat, and Nashad Khan was very helpful. This law is over 1,500 pages of complex legalese. The panel selected isolated topics from those pages to summarize instead of trying to outline the entire law. I highlighted three of these topics.

One: Changes to Debt to Income Ratio in Lending
The crafters of the law saw it as the “answer” to the out of control lending problem; lowering the DTI limits the exposure for overleveraged primary lending. The law phases in the lowering of DTI for lending over the course of seven years so practitioners must revise their underwriting requirements each year to comply. At the end of the seven year phase, DTI will be limited to 43% of revolving debt and loans.

Two: The Power of the Consumer Financial Protection Bureau (CFPB)
This is now the most powerful agency in the U.S. It can investigate, enforce and initiate lawsuits with its own powers and eliminated the need to inter-bureau investigations. If the CFPB appears, you can have a civil and criminal case filed against you. It is funded by fines and imposes a fiduciary duty on all parties involved in consumer lending (including agents). There is no statute of limitations to prevent investigation either.

Three: Pitfalls of Affiliated Businesses
Marketing arrangements are subject to review and fines for failing to properly include disclosures. You can be held financially responsible for your partners’ actions even if you aren’t involved. If you have a joint venture and/or an appearance of an affiliated business, you must learn about the closing disclosure language. CFPB went to a company to investigate one report and stayed for years only to fine them for failure to properly include disclosures. Fines can range from $5,000 up to $1 million a day.

To summarize, when I walked out of the Dodd Frank education session, I agreed that lending in the U.S. was forever changed and not so sure for the better. However, it is the law and if you choose real estate as a profession, learning how to comply in your area is needed. When in doubt disclose, discuss, and decide on the most conservative method of handling consumer loans that come through your office.

Women’s Cancers: Basic research seeks new ways to attack cancer

Posted on by NAWRB

Advances in immunotherapy
Peter P. Lee, M.D., chair of cancer immunotherapeutics and tumor immunology at City of Hope, is pursuing several projects that are part of a what he calls integrated immunotherapy. This concept advances the idea that effective cancer treatment must address each phase or action of the body’s complex immune system.

In one project, Lee is studying the role of stromal cells, which make up connective tissue. He has found that stromal cells support cancer by attracting and modulating immune cells. His team is currently developing three-dimensional microculture systems to study the interactions among stroma, cancer and immune cells in tumors, with a goal of learning how to disrupt cancer’s support system and restore immune function.

Lee is also advancing the use of spectral imaging. Using powerful new technology, Lee is able to see two- and three-dimensional images of the location of cells, making it possible to understand how immune cells and cancer cells interact within the tumor and sentinel nodes (lymph nodes found under the arm, and often the first site of metastasis for breast cancer). One of the leaders in this sophisticated imaging technique, Lee recently led a worldwide webinar to teach other researchers about spectral imaging.

A novel way to target cancer
Yuan Yuan, M.D., Ph.D., assistant professor of medical oncology, is studying how tumor cells use nutrients to grow and proliferate, and how this process differs from normal cell metabolism, so that she can selectively target cancer cells. Yuan is collaborating with David Ann, Ph.D., professor of molecular pharmacology, who found that some types of breast cancer cells lack a specific enzyme and, as a result, need the amino acid arginine to grow.

Together, their research demonstrates how to deprive these cells of arginine and suppress tumor growth. Yuan seeks to translate this novel research to the clinic, where it will be the focus of a first-of-its-kind study for women with breast cancer.

How genes help cancer spread
Emily Wang, Ph.D., associate professor of cancer biology, focuses her research on understanding how microRNAs (miRNAs) regulate gene expression to promote or prevent cancer. She has found that breast cancer cells secrete specific miRNAs that dictate gene expression in healthy cells at potential metastatic sites for breast cancer.

Wang’s studies also showed that treatment with a miRNA inhibitor significantly delayed metastasis — suggesting a novel therapeutic strategy to prevent or treat metastatic breast cancer. Wang is collaborating with Yuan to translate these findings to the clinic.

Photo: City of Hope’s fight against breast cancer, shown here, includes immunotherapy and an exploration of gene silencing.

Molecular imaging and disease
Tijana Jovanovic-Talisman, Ph.D., assistant professor of molecular medicine, recently joined City of Hope to advance her research using super resolution microscopy. Jovanovic-Talisman is using this sophisticated imaging method to see and quantify proteins on the cell membrane and inside cells. On a biological level, this method allows Jovanovic-Talisman to better understand protein signaling, both in normal cells and in cells affected by disease. She is also collaborating with other researchers at City of Hope to design new compounds to target cancer cells.

In one effort, Jovanovic-Talisman is studying the tumor marker called nucleoporins 88, which is overexpressed in solid tumors, including breast and ovarian cancers. She is currently designing mimics, down to the nanometer scale, of the biological processes that are occurring in cancer and healthy cells. These models will be used to further understand how nucleoporins 88 causes cancer and to test drugs that target the molecule.

The quest for a novel therapeutic
Linda Malkas, Ph.D., associate chair and professor of molecular and cellular biology and the deputy director of basic research, is focused on identifying compounds that selectively target cancer. Previously, Malkas found a target in cancer cells, called cancer-associated proliferating cell nuclear antigen, that plays a role in DNA repair and helps cancer survive and proliferate.

Now, she is collaborating with City of Hope’s molecular chemists to modify small molecules that selectively block the antigen. Together, they have created a highly active synthetic compound called AOH1160. Recent animal studies have shown that AOH1160 is effective at inhibiting tumor growth. This exciting new compound could lead to a novel therapeutic for women fighting breast cancer.

Silencing genes to target cancer
Carlotta Glackin, Ph.D., associate professor of neurosciences, studies a protein called Twist1, which is overexpressed in many aggressive cancers, including breast and ovarian cancers. She is working to develop targeted therapeutics that inhibit Twist1 and stop cancer.

In collaboration with John Rossi, Ph.D., Lidow Family Research Chair and chair and professor of molecular and cellular biology, Glackin is exploring the use of small-interfering RNA (siRNA) bound to nanoparticles to deliver gene-silencing materials to tumors and block the expression of Twist1. Glackin studied this approach in cell lines and found that it was effective. Now, she is studying this therapeutic in animal models, and hopes to open a clinical trial at City of Hope. Glackin’s research provides another promising approach to therapy that could bring healing to so many women battling cancer.

—

Next: Part 2: Studies of risk and prevention

Rule Tomorrow by Embracing Technology Today

Posted on by NAWRB

A day is made up of seconds, minutes, and hours. Today means yesterday is forever gone. It’s the most fundamental part of life and entirely up to us, as real estate professionals, to determine what we do with the amount we’ve been given. Real estate technology innovators are pioneering new ways for us to be more efficient, allowing us to maximize every bit of our precious time. Rule tomorrow by embracing technology today.

So how did today begin for you? When you woke up did you instantly grab your smartphone, tablet, or notebook? How different was your morning routine 5-10 years ago? Gone are the days of responding to a client’s needs after you get into the office. Some of us may long for those lingering mornings, while others can’t wait to connect, check in, reply, and update our status. No matter your viewpoint, technology is encroaching on our daily lives and it will continue its creep. Clients’ expectations have changed as well. Because there is no stopping this momentum we should view this shift as an opportunity to improve customer service and satisfaction. In order to stay ahead of the competition you must embrace technological advances, discover your “value-added,” and utilize tools that work for you.

One cannot say they are truly leveraging technology by simply having a website. Search portals are syndicating listings in complex ways and driving that traffic directly to their doorstep. Small brokerages simply cannot afford to compete in this space; the advertising budgets of online giants like Zillow and Trulia are huge. Of course, I’m not advocating that you take your site offline or stop updating it, but you need to recognize the role it plays in your marketing strategy and bottom line. The next time you sit down with a potential seller, consider this statement, “your listing will be featured on my website,” is not as important as it was a decade ago. You need to create real value for your clients by introducing cutting edge tools that will help them sell their home for the most money and in the shortest period of time. Yes, this concept of time is important to a busy seller too. Win their business by demonstrating that you are the forward-thinking expert. Empower them to focus on their responsibilities without worrying about how much time the process of selling their home will take.

Warning: if you are scared of technology, you are at risk of being left behind. It’s okay to admit that you aren’t the most comfortable or proficient. However, stating that it adds little to no value to you could be detrimental to your long term relevancy in this business. Although an agent’s role in a real estate transaction will not be replaced, technology solutions are subtly altering the process by minimizing your involvement with each step along the way. This is essentially giving you more time to exceed expectations. Don’t waste it. This trend will continue so you need to find ways to remind your clients of your value proposition.

You cannot let technology run you, you must learn to control it. Take a moment and think about the logistics of your business. Agents in your office may complete the same task with various degrees of efficiency. Everyone finds what works best for them. What works for you? What do you do manually now that you wish you could do digitally? If you are manually doing something that can be automated, you’re wasting time. In today’s robust app marketplaces, you are bound to find a solution that is just right for you and your unique approach to your business. Finding that perfect mobile application that helps you take notes, scan documents outside your office, or generate new leads should be fun and more often than not, free. But stay focused. Remember to choose the apps that will help you accomplish your goals in a manner that works best for you.

In terms of prospective buyer business, these same mobile apps have ushered in new ways to communicate and connect with people. Prospective buyers are moving their fingers from dial pads to keyboards for texting, “liking,” and tweeting in far greater numbers than ever imagined. They want information, they want answers, but most of all they want us. Not tomorrow or even tonight, but now. Equip yourself with the technology you need to be a digital “first responder.” When you find that the apps you’re leveraging are creating more time for you to prospect, you’re on the right track.

In a world where time stops for nothing, be prepared to seize the moment whenever and wherever it presents itself.

—

Clark Giguiere

Founder & CEO of AgentPair
@clarkgiguiere
agentpair.com
@agentpair
Clark Giguiere has over a decade of experience in commercial and residential real estate, and five years of high volume REO sales and investment experience. He is also the Founder and CEO of AgentPair, a mobile app that connects consumers with agents for on-demand home tours.

Women Business Owners Take Capitol Hill

Posted on by Ann Sullivan

Advocating for change, more than 300 women business owners and their leaders descended on Washington, D.C. packing one of the largest Congressional hearing rooms on Capitol Hill to standing room only. Congressional hearings rarely draw this kind of attendance or celebrity, but both were on display for a July 23, 2014 hearing, “Empowering Women Entrepreneurs: Understanding Successes, Addressing Persistent Challenges, and Identifying New Opportunities,” chaired by newly appointed Committee Chair Maria Cantwell (D-WA).

The hearing, which coincided with the annual conferences of Women Impacting Public Policy (WIPP) and the Association of Women’s Business Centers (AWBC), featured witness testimony from Maria Contreras-Sweet, Administrator of the Small Business Administration, Barbara Corcoran, host of the hit ABC TV series “Shark Tank,” Nely Galán and women entrepreneurs who spoke of their experiences – both the successes and the struggles – of starting and growing businesses. The hearing was broken into three separate sessions: access to capital, access to federal contracts, and access to counseling and training.

The takeaway was simple: there are federal policies that can help women business owners in each of the three areas and the Congress should act on them immediately. The reaction from the Senate was swift; one week after the hearing, Committee Chair Cantwell and six of her Senate colleagues introduced legislation, appropriately titled the Women’s Small Business Ownership Act of 2014, S.2693.

“Women make up half of the population, and we have a lot of ideas that could become great products and spur our economy,” said Chair Cantwell at the bill’s introduction, adding, “This legislation will help ensure women entrepreneurs get the right tools they need to turn those ideas into new businesses and create jobs.”

The Senate bill was largely founded on a report released by the Committee in July, 21st Century Barriers to Women’s Entrepreneurship. The findings are summarized neatly – yet alarmingly – into two short sentences: “In the 21st Century, women entrepreneurs still face a glass ceiling; while women-owned firmsare the fastestgrowing segment of businesses, and many succeed, women must overcome barriers their male counterparts do not face.” The report highlights the fact that women businesses generate $3 trillion in economic activity and support more than 23 million jobs, but continue to face significant obstacles when it comes to business ownership.

More specifically, the Senate report identified critical challenges women confront in three issue areas: access to capital, access to business training and counseling, and access to the federal marketplace. According to the report, women entrepreneurs account for just $1 out of every $23 in small business lending in the United States, despite representing 30 percent of all small companies. Women’s Business Centers (WBCs) provide entrepreneurial and business training to women entrepreneurs (which they do efficiently and effectively at a cost of approximately $137 per entrepreneur) but are stretched extremely thin with most states having just one center with a small staff.Despite a 500 billion dollar a year federal marketplace, women-owned small businesses got only 4.3 percent of federal contracts in FY2013, despite a Congressionally mandated goal of five percent.

In order to lift the glass ceiling for women business owners, the legislation proposes specific actions, which are described in greater depth below:

Access to Capital
The bill enhances the SBA’s Microloan program by allowing lenders in the program to increase overall lending capacity to $7 million and by offering more flexible loan terms, and improved business counseling and technical assistance. This legislation also makes the SBA Intermediary Lending Program permanent and would extend for one more year the fee waiver on 7(a) business loans below $150,000. Together, these changes would allow for greater access to capital for women-owned businesses. If you do not know about these lending programs, go to the Small Business Administration’s website.

Access to Counseling and Training
To boost support and modernize the national network of Women’s Business Centers, the bill increases funding of the program from $14.5 million per year to $26.75 million and increases the maximum grant award from $150,000 to $250,000. The bill also requires that a formal set of program guidelines be issued and reinstates the SBA’s authority to waive the federal matching requirement.

Access to Federal Contracting
Finally, the legislation would provide sole source authority in the Women-Owned Small Business (WOSB) Procurement Program. Currently, government agencies must find multiple women-owned small businesses capable of competing for a contract before the WOSB program can be used. Sole source authority removes this burden, making it easier for agencies to award contracts to women through the program. It is also a matter of fairness, as the WOSB is the only government small business contracting program that does not have sole-source authority.

These policies are important and advocates such as WIPP, the AWBC, and the Association for Enterprise Opportunity (AEO), are working hard to see them signed into law.

The sheer number and awe-inspiring presence of so many women – who traveled from all over the country – to unite in support of a common cause was powerful. The hearing room, more typically accustomed to hushed tones and wonky exchanges, was packed to the brim with successful women business owners ready to act.

While organizations dedicated to assisting women business owners will press for enactment, it is the push from each woman business owner in the country that will make the difference.

Together, we can break through the glass ceiling that now limits women businesses from reaching their full potential.

—

 

Ann Sullivan
WIPP Government
Relations

Successful Launch of the Women in Housing

Posted on by NAWRB

The National Association of Women in Real Estate Businesses (NAWRB) in partnership with the U.S. Small Business Administration (SBA) Santa Ana District Office presented the Women in Housing Financial Fitness Road Show this month at the Lutron Experience Center in Irvine, CA.

NAWRB’s Inaugural Women in Housing Financial Fitness Road Show is a first-of-its-kind, breakthrough program for women in all industries within the housing economy. More than just tools to navigate women’s existing business through the changing terrain, NAWRB’s Women in Housing Financial Fitness Road Show reached a whole new level. Utilizing a specialized hybrid of women in housing and women in government outreach, women can take advantage of our Fast Track niche. By connecting women with federal and local programs, set-asides, funding options and contracting opportunities available to grow their businesses both vertically and horizontally, women in housing will have the awareness to sustainable growth and live beyond commission to commission.

Hosted by Morgan Stanley, Vivian Afriyie—a Morgan Stanley Financial Advisor—opened the event in dramatic fashion showcasing asset based loans vs. traditional income and credit based loans. Recently, Morgan Stanley closed a 150 million dollar commercial real estate loan in six weeks. “Bringing the shock treatment with our takeaways from $25,000 SBA business loans to the $200 million dollar Morgan Stanley Diversified Securities-based loans for clients, really ignited the awareness in the room,” stated Desirée Patno, CEO and Founder of NAWRB.

Testimonials:
“Thank you for having the vision and for putting it all together! It was a great event!” -U.S. SBA-Santa Ana District Office, Economic Development Specialist Sylvia Gutierrez.

“Loved the NAWRB Road Show! The caliber of speakers that were there to share with us how to grow our business was very impressive. I loved the way Desirée has a way to break down the information and make it real life and tangible. Great job!” -The Omni Group, Tina Marie Estrada

The resources and opportunities are out there. If you want to be part of the Road Show or have it travel to a city near you, email us at Roadshow@NAWRB.com. Make a difference and join the movement bringing awareness, opportunities, and access to women in housing.

The “Ability to Repay Rule”

Posted on by Renee Marie Smith

With more aggressive lending compliance standards and regulations in 2014, lenders have been scrambling to implement internal systems in order to comply. Every real estate professional should understand the central issue that will impact their clients who obtain loans at the closing table: the “Ability to Repay” Rule (ATR).

The momentum behind ATR is to reduce systemic fraud, reduce borrower litigation in order to correct faulty lender underwriting guidelines, and protect local markets from predatory lending or price fixing. Earlier this year, JPMorgan and Bank of America initiated lawsuits against the national title insurance underwriters for their local agents’ failure to identify fraud. Whether this failure was due to compliancy or complicit behavior is no longer relevant in the new lending era of Dodd-Frank. Higher standards make each participant vigilant on compliance and identifying fraud with more checks and balances from the loan processor to the closing table. It is now the agent’s duty to determine if the ATR rule and the supporting paperwork are correct. Every aspect of the loan is now scrutinized, even the title insurance underwriter, closing office, and closing attorney.

Furthermore, the Ability to Repay (ATR) rule is ambiguous. The rule itself doesn’t have a specific set of percentages or dollar guidelines. It requires the lender to make a reasonable, good faith determination—before and when a loan is consummated—that the consumer has the assets needed to repay the loan. Specifically, buyers should be prepared with paperwork to support their loan request and these documents must have 3rd party verification. To assist loan transactions, the Consumer Financial Protection Bureau (CFPB), which was formed under Dodd-Frank in 2010, states that creditors generally must consider eight underwriting factors and generally use reasonably reliable third party records to verify the information when implementing the ATR Rule. These factors are:

  • Current or reasonably expected income or assets
  • Current employment status
  • The monthly payment on the covered transaction
  • The monthly payment on any simultaneous loan
  • The monthly payment for mortgage related obligations
  • Current debt obligations, alimony, and child support
  • The monthly debt to income ratio or residual income
  • Credit history

Lenders will be presumed to have complied with ATR if they issue a Qualified Mortgage. Real estate professionals should be on the lookout for these indicators to verify their clients are receiving a Qualified Mortgage when at the closing table:

  • No excess upfront points and fees (currently used is
    3% of mortgage value)
  • No toxic loan features (such as interest only, negative
    amortization, or loan term longer than 30 years)
  • Cap on debit to income ratio (current standard is 43%
    except for government affordability standards)
  • No balloon payments

One such new “checks” at the closing table are 3rd party verification services. For the first time in my 18 years as a real estate attorney, my office was required to go through a 3rd party vetting process prior to the lender sending over a title request on a loan. It was an interesting process performed by The Title Attorney Support Team/ Q&A Department of a servicer. The lender’s name was withheld and the request only identified the property, not the borrower. Disclaimers were pronounced advising that this was not a request to prepare a title package for closing but a verification of my company’s authenticity and HUD compliance practices. My underwriter was contacted to confirm my license and I was required to produce references. This entire process took approximately one week.

Moving forward, expect to see more 3rd party vendors being used to verify the borrower’s information, property details and closing transaction procedures. Lenders now view the closing agents as the front lines to verify if a transaction is legitimate under the ATR and with a wave of 2014 lawsuits against title insurance underwriters for their agents’ failures, I think the trend of passing compliance issues onto the local closing table will continue.

You can never substitute passion with hard work but you can use hard work to succeed with your passion.

—

 

Renee Marie Smith, Esq., Author of the My Guru book Series

Visit us at:
www.smithtitleservices.com
and www.mygurupublishing.com

 

Emerging Mortgage Trends of 2014

Posted on by NAWRB

It’s no secret that trends within the mortgage and lending industries can fluctuate significantly from quarter to quarter. Countless factors such as the economy, new legislation, and changing demographics can impact these shifts. With the ever-changing financial landscape, we have pinpointed the most current and prevalent mortgage and lending trends of 2014.

Mortgage Volume Drops
Mortgage loan volumes have experienced a consistent drop across all lenders throughout 2014. In the first quarter, lenders made a total loan volume of $226 billion, an all-time low amount that hasn’t been achieved since 1997. One of the largest lenders, Wells Fargo, took the hardest hit with a 67% drop in originated residential mortgages.

One explanation for the steady decline in mortgage volume is due to the Federal Reserve’s mission to taper stimulus cash. As a result of the tapering, interest rates rose by a percentage point. The rise in interest rates has caused more people to become weary of refinancing which is correlated to the drop in mortgage volumes.

Rise in All-Cash Purchases
One variable has contributed significantly to the drop in the nation’s total loan volume: all-cash purchases. With rising interest rates, all-cash purchases have become a major contender among transactions in the housing economy. Interest rates are hardly the only reason though. Older generations are downsizing their current homes in favor of smaller homes. The switch to smaller homes has made all-cash purchases more feasible for the baby boomer generation.

Foreign investors buying property in the United States have also resulted in a large percentage of all-cash purchases. Buyers from China alone have spent $22 billion on properties in the United States. Foreign buyers tend to be members of the upper middle class and upper class of their respective countries. Waning economies and volatile political regimes have fueled many international buyers to make all-cash housing purchases in the more stable environment of the United States.

In the first quarter of 2014, all-cash purchases accounted for a record high of 43% of transactions. This trend in conjunction with tighter lending standards has predictably led to less lending. As far as domestic purchases are concerned, the all-cash trend could prove to be a temporary fixture as some lenders have joined a movement to lower lending standards. Lenders anticipate that looser lending standards will create a shift from skyrocketing all-cash purchases to more loans.

Paperless Options
Processes within the mortgage industry require a great deal of paperwork, as many people know. It is not unusual for cumbersome paperwork to prolong the process of closing a mortgage and processing miscellaneous loans. Although some measures have been taken to reduce waste, the U.S. Small Business Administration (SBA) and Fannie Mae are taking it a step further by implementing new programs and initiatives.

Maria Contreras-Sweet—24th Administrator of the SBA—recently announced an SBA agenda filled with new initiatives at the Center for American Progress in Washington, D.C. One such initiative includes the introduction of digital processes in favor of traditional yet time-consuming faxes and paperwork. The SBA will usher in a new era filled with electronic signatures and the ability to upload and generate documents. The switch is projected to save not only thousands of dollars but hours of time.

Fannie Mae has joined the digital trend and has commissioned a team to tackle common problems within the mortgage industry. The team identified a lack of electronic processes as the source of many issues within the industry. They found multiple solutions to amend the issue and say as much as $1 billion can be saved with electronic processes. The Consumer Financial Protection Bureau (CFPB) has also taken steps to evaluate what must be done to make an electronic switch. Although it could take years to apply the findings of both groups, it is clear that industries are finding the need to adapt to rapidly evolving technology.

The Decline of Negative Equity
Multiple reports have found that the percentage of total negative equity has decreased in the first quarter of 2014. CoreLogic reported 12.7% of mortgaged homes in the first quarter of 2014 as having negative equity which translates to almost 6.3 million homes nationwide. This statistic sharply contrasts to the 19.8% found in the first quarter of 2013 with 9.7 million homes ‘underwater.’

Nevada—the state with the highest incident of negative equity in residential properties—experienced a 16% drop in the amount of residential properties with negative equity when compared to the first quarter of 2013. Negative equity is forecasted to further decline as the year progresses and home prices steadily increase.

More Elderly with Debt
Elderly Americans carry more mortgage debt throughout their retirement years. An overwhelming amount of senior citizens—those 65 and older—not only have increased mortgage debt but increased credit card debt. The latest statistics provided by the Consumer Financial Protection Bureau (CBPB) reveal that from 2001 to 2011, the amount of elderly homeowners with mortgage debt increased by 2.3 million. Rising home values and the trend of people purchasing their first homes in the latter half of their lives all contribute to the increase in mortgage debt.

Purchases that contribute to credit card debt appear to be directly related to the relaxed lifestyle most people envision in their retirement years. The idea of retirement for many evokes thoughts of traveling, trying new hobbies, and enjoying leisure time in general. The top expenses among the senior citizen demographic include new automotives, recreational items such as technology gadgets and camping supplies, and miscellaneous purchases for pets.

Experts stress that aging generations must account for a shift in expenses as they reach their retirement years. For example, medical expenses will become a larger factor in a retirees’ budget than compared to someone in pre-retirement years. Experts stress that with careful planning and well-thought spending plans, the growing trend could lessen in the future.