In the Women’s Business Centers Sustainability Act of 1999, Congress  established the sustainability pilot program because of concerns that  WBCs could not become self-sustaining in 5 years and needed continued  SBA funding. In addition to the WBC program, SBA’s SBDC and SCORE programs also  provide training and counseling services to small business clients. Under the Small Business Act, as amended, SCORE is sponsored by and  may receive appropriations through SBA. 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 do not have the same  limits, even though SBA also administers those programs. WBCs are not guaranteed funding each year because SBA makes  awards each year at its discretion. Current program participants and those that  have successfully graduated will be eligible to apply for continuous  funding through these awards. The award process will remain competitive  and the number of organizations competing could increase while SBA’s  annual budget for the WBC program may not increase beyond the  approximate $12 million provided in the last 5 years. Prior to the new program changes, SBA officials  emphasized that the WBC program is the agency’s only performance based  program and said that they believed this provided an incentive for WBCs  to continuously improve. SBA  just completed making 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. Imbalances in SBA’s Staff Resources and Ineffective Communication with WBCs Could Reduce the Effectiveness of Oversight Procedures

Our preliminary review found that SBA had developed written procedures  for monitoring the performance and financial management activities of  WBCs and has taken steps to measure the WBC program’s effectiveness. SBA relies heavily on District Office Technical Representatives (DOTRs)  to carry out oversight responsibilities, but our preliminary review suggests  that the downsizing of SBA’s staffing may have created challenges for  DOTRs in fulfilling their assigned responsibilities. Our preliminary review found that SBA had taken some steps to adapt  program oversight procedures to staffing changes in district offices. These and other revisions that SBA has made  to date appear to have been made on an as-needed basis and were not part  of a strategic process or plan to revise its oversight activities. WBCs also cited concerns about communication with SBA. One study that  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 Appear to Lack the Guidance Needed to Improve These Efforts

Based on our preliminary review, we found that the WBCs 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. Most WBCs told us that they referred clients to the SBDCs and SCORE  when appropriate, and several coordinated services with the other  programs to leverage resources and avoid duplication. SBA officials told  us that they expected district offices to ensure that the programs did not  duplicate each other, and the program requirement suggests that WBCs  can promote coordination through co-sponsorship arrangements or  memorandums of understanding. Some WBCs told us that coordinating services could be difficult. These concerns and uncertainties thwart coordination  efforts and could increase the risk of service duplication in some  geographic areas.
Why GAO Did This Study

The Small Business Administration (SBA) provides training and counseling services to women entrepreneurs through the Women's Business Center (WBC) program. With approximately $12 million in fiscal year 2007, SBA funded awards to 99 WBCs. However, Congress and WBCs have expressed concerns about the uncertain nature of the program's funding structure. Concerns have also been raised about the possibility that the WBC and two other SBA programs, the Small Business Development Center (SBDC) and SCORE programs, are duplicating each other's efforts. This testimony discusses preliminary views on (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, WBCs were funded on a temporary basis for up to 10 years, at which time it was expected that the centers would become self-sustaining. Beginning in 1997, SBA made annual awards to WBCs for up to 5 years. Because of concerns that WBCs could not sustain their 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, as well as to current program participants. Like the current awards, the 3-year awards are competitive, and more centers may be applying for limited dollars. SBA is currently revising its award process to incorporate the new program changes. Though SBA has oversight procedures in place to monitor WBCs' performance and use of federal funds, staff shortages from the agency's downsizing and limited communication may hinder SBA's oversight efforts. SBA relies extensively on district office technical representatives (DOTRs) to oversee WBCs, but these staff members also have other job responsibilities and may not have the needed expertise to conduct some 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 communication problems, and one study reported that 54 percent of 52 WBCs responding to the study's survey said that SBA could improve its communication with the centers. For example, some WBCs told us that SBA did not provide sufficient feedback on their performance. Under the terms of the WBC award, the centers are required to coordinate with local SBDCs and SCORE chapters. SBA officials told us that they expected district offices to ensure that the programs did not duplicate each other. However, based on our preliminary review, we found that SBA provided limited guidance on how to successfully carry out coordination efforts. Most of the WBCs that we spoke with explained that in some situations they referred clients to an SBDC or SCORE counselor, and some WBCs also took steps to more actively coordinate with local SBDCs and SCORE chapters to avoid duplication and leverage resources. However, some WBCs told us that coordinating services was difficult, as the programs were each measured by the number of clients served and could end up competing for clients. Such concerns thwart coordination efforts and could increase the risk of duplication in some geographic areas.