However, in 1991, Congress authorized SBA to make  awards for 3-year projects, and in 1997, Congress authorized SBA to make  awards to WBCs for 5-year projects. Several WBCs that we spoke with expressed concern  about the funding term limits and pointed out that the SBDC and SCORE  programs did not have the same limits, even though SBA also administers  those programs. Because WBCs sometimes  established their operations with SBA funds and depended on SBA funds  to leverage other support, many were concerned about their ability to  continue operations after 5 to 10 years of receiving SBA funding. In September 2007, SBA made WBC awards for fiscal year  2007 to fund activities in fiscal year 2008, and SBA officials told us that  they plan to begin providing the 3-year renewable awards in fiscal year  2008 as soon as practicable after appropriations are received. SBA Has Oversight Procedures in Place, but Imbalances in Its Staff Resources and Ineffective Communication with WBCs Have Hindered Their Effectiveness

SBA has developed oversight procedures for the WBC program, but  imbalances in the agency’s staff resources for WBC oversight and  ineffective communication with WBCs reduce the effectiveness of these  procedures. We found that SBA had taken some steps to adapt WBC program oversight  procedures to its limited staff resources and to increase efficiency in some  areas. One study  we reviewed reported that 54 percent of 52 WBCs surveyed said that SBA  could improve its communication with them. WBCs Make Some Efforts to Coordinate with SBDCs and SCORE, but SBA Provides Limited Guidance to Support These Efforts

The WBCs that we spoke with focused on a different type of client than  the SBDCs and SCORE chapters in their areas, and several WBCs actively  coordinated with the other programs to avoid duplicating services. Our review of the statutory authorities governing the WBC, SBDC, and  SCORE programs found that each of the programs is required to provide  training and counseling, but the WBC program’s statutory authority  requires SBA to evaluate WBCs on, among other things, their ability to  target services to socially and economically disadvantaged clients. Also, WBCs raised concerns about how to effectively coordinate by  colocating with an SBDC or SCORE chapter. WBCs  and SCORE still have similar measures, and some measures could hinder  collaborative efforts. However, concerns about whether the federal  investment was sufficient to create sustainable WBCs led Congress to  create a pilot program to provide sustainability awards for an additional 5  years. This year,  Congress created a more permanent funding stream for WBCs that  continue to meet the program’s requirements by establishing 3-year  renewable awards. Communication between SBA and WBCs could also be improved. SBA is aware that duplication could occur and has  taken steps to encourage coordination but there is no explicit guidance on  how to successfully coordinate services. Appendix I: Scope and Methodology

In this report, we address (1) the uncertainties associated with the funding  process for Women’s Business Centers (WBC); (2) the Small Business  Administration’s (SBA) oversight of the WBC program, including policies  and procedures for monitoring compliance with program requirements  and assessing program effectiveness; and (3) the services that WBCs  provide to small businesses and actions that SBA and WBCs have taken to  avoid duplicating the services offered by the Small Business Development  Center (SBDC) and SCORE (formerly Service Corps of Retired  Executives) programs.
Why GAO Did This Study

The Women's Business Center (WBC) Program provides training and counseling services to women entrepreneurs, especially those who are socially and economically disadvantaged. In fiscal year 2007, the Small Business Administration (SBA) funded awards to 99 WBCs. However, Congress and WBCs expressed concerns about the uncertain nature of the program's funding structure. Concerns have also been raised about whether the WBC and two other SBA programs, the Small Business Development Center (SBDC) and SCORE programs, duplicate services. This report addresses (1) uncertainties associated with the funding process for WBCs; (2) SBA's oversight of the WBC program; and (3) actions that SBA and WBCs have taken to avoid duplication among the WBC, SBDC, and SCORE programs. GAO reviewed policies, procedures, examinations, and studies related to the funding, oversight, and services of WBCs and interviewed SBA, WBC, SBDC, and SCORE officials.

What GAO Found

Until 2007, SBA funded WBCs for up to 10 years, at which time it was expected that they would become self-sustaining. Specifically, since 1997, SBA has made annual awards to WBCs for up to 5 years. Because of concerns that WBCs could not sustain operations without continued SBA funding, in 1999, Congress created a pilot program to extend funding an additional 5 years. Due to continued uncertainty about WBCs' ability to sustain operations without SBA funding, in May 2007, Congress passed legislation authorizing renewable 3-year awards to WBCs that "graduated" from the program after 10 years and to current program participants. Like the current awards, the 3-year awards are competitive. SBA is revising its award process and plans to provide the 3-year awards in fiscal year 2008. Though SBA has oversight procedures in place to monitor WBCs' performance and use of federal funds, GAO found indications that staff shortages from the agency's downsizing and ineffective communication was hindering SBA's oversight efforts. SBA relies extensively on district office staff to oversee WBCs, but these staff members have other agency responsibilities and may not have the needed expertise to conduct some WBC oversight procedures. SBA provides annual training and has taken steps to adjust its oversight procedures to adapt to staffing changes, but concerns remain. Some WBCs also cited problems with communication, and one study reported that 54 percent of 52 WBCs responding to its survey said that SBA could improve its communication with the centers. Ineffective communication led to confusion among some WBCs about how to meet program requirements. Under the terms of the WBC award, SBA requires WBCs to coordinate with local SBDCs and SCORE chapters. However, GAO found that SBA provided limited guidance or information on successful coordination. Most of the WBCs that GAO spoke with explained that in some situations they referred clients to an SBDC or SCORE counselor, and some WBCs took steps to more actively coordinate with local SBDCs and SCORE chapters to avoid duplication and leverage resources. Still, some WBCs said that coordinating services was difficult, as the programs have similar performance measures and could end up competing for clients. Such concerns thwart coordination efforts and could increase the risk of duplication in some geographic areas.