Seven Small Business Bills Approved by the House of Representatives

This month, the House voted to pass seven of nine small business bills under suspension of the rules— a procedure used to quickly pass non-controversial bills. The seven bills that passed:

  • Small Business Development Center Cyber Training Act (H.R. 3170):  The Small Business Administration would offer cybersecurity and related planning assistance. The bill would require the SBA to train Small Business Development Center employees in counseling small businesses on cybersecurity questions.
  • Change Order Transparency for Federal Contractors Act (H.R. 4754):  Small business contractors and subcontractors seeking bids for federal construction projects would receive improved information from agencies including performance data and policies on change orders.
  • Women’s Business Centers Improvements Act (H.R. 1680):  The Office of Women’s Business Ownership’s responsibilities would be modified and it would be authorized to make larger grants to women’s business centers.
  • Small Business Development Centers Improvement Act (H.R. 1702): The SBA’s Small Business Development Center grant program would be modified and given new reporting requirements.
  • Spurring Business in Communities Act (H.R. 4111):  The creation of new Small Business Investment Companies in underserved states would be promoted under this bill.
  • Main Street Employee Ownership Act (H.R. 5236):  Employee cooperatives would become eligible for loans backed by the Small Business Administration. The bill would also allow loans to be made to a small business to facilitate employees’ purchase of the firm. The measure also would require additional agency outreach to promote employee purchase of companies.
  • Small Business 7(a) Lending Oversight Reform Act (H.R. 4743):  The Small Business Administration’s Office of Credit Risk Management would be codified and given new oversight responsibilities for the 7(a) program.

The two bills that did not pass were Small Business Advanced Cybersecurity Enhancements Act (H.R. 4668), which would create a central small business cybersecurity assistance unit and small business cybersecurity assistance units in each small business development center, and the SCORE for Small Business Act (H.R. 1700), reauthorizing the SCORE program.

The Trump Administration Sends Request to Congress for Over $15 Billion of Spending Cuts for This Year

Using an obscure federal law, the White House sent a sweeping $15.4 billion rescission package to Congress which requests spending cuts this year across 10 federal departments.  This request comes from the Trump Administration in an effort to address the rising federal deficit.

Some programs in which cuts were requested include:

  • $50 million from the Rural Business-Cooperative Service (Department of Agriculture)
  • $30 million from the Economic Development Administration (Department of Commerce)
  • $4.3 billion from the Advanced Technology Vehicles Manufacturing Loan Program (Department of Energy)
  • $683 million from the Innovative Technology Loan Guarantee Program (Department of Energy)
  • $800 million from the Center for Medicare and Medicaid Innovation (Department of Health & Human Services)
  • $179.1 million from the Federal Highway Administration (Department of Transportation)
  • $53.4 million from the Federal Railroad Administration (Department of Transportation)
  • $46.5 million from the Federal Transit Administration (Department of Transportation)
  • $22.7 million from the Community Development Financial Institution (CDFI) Fund (Department of Treasury)
  • $151 million from Capital Magnet Fund, Community Development Financial Institutions (Department of Treasury)

These cuts, if approved, could impact current government contracts depending on the agency. In addition, cuts to the CDFI Fund and the Capital Magnet Fund will have a big impact on lending to minority and women-owned businesses and those in economically disadvantaged areas.

The House Appropriations Committee has 25 days to address the request by crafting its own bill based on the White House recommendations or decide not to act.  After 25 days, other House members can introduce their own rescissions legislation. Congress must act within 45 days of the request, which was made on May 8th.  If the House passes a bill, it would be taken up next by the Senate. Rescissions bills require only a simple majority for passage.

Entrepreneurs shine during National Small Business Week

By Linda McMahon, SBA Administrator

Through awards ceremonies, media interviews and community events, we honor entrepreneurs whose achievements stand out. As an entrepreneur myself, I know the hard work that goes in to starting and building a small business – efforts that don’t often get the attention they deserve.

Honorees in this week’ spotlight do not cast a shadow that dims the efforts of others; rather they serve as a beacon – to competitors, up-and-comers and communities as a whole. They show what is possible. They are innovators and problem solvelinda-mcmahon-high.jpgrs, creating products and services that are better, smarter or more efficient than what came before. They are risk takers. And through their success, they inspire others to dream and to create small businesses of their own.

Small businesses contribute so much to our communities and economy. They create two out of every three net new jobs in the private sector. More than half of all Americans either work for or own a small business. Entrepreneurs are not only making a living for themselves, they are making their neighborhoods vibrant places to live and work and contributing to our nation’s economic strength.

The U.S. Small Business Administration is so proud to have been a part of small businesses’ success for 65 years. Since 1953, the SBA has been supporting entrepreneurs with the tools they need to succeed. The Agency – through its headquarters in Washington, DC; its 68 district offices nationwide; and resources partners like Small Business Development Centers, Women’s Business Centers, Veterans Business Opportunity Centers and SCORE chapters – serves entrepreneurs at every stage of their lifecycle. It guarantees loans for entrepreneurs who can’t get capital from other sources, mitigating a lender’s risk. It offers counseling on starting and scaling a business, from how to draft a business plan to how to export products overseas. It trains small businesses to compete for government contracts. And it helps those recovering from a declared disaster get back on their feet.

Whether they are starting up, expanding or getting through a tough time, the SBA is the nation’s only go-to resource for small business backed by the strength and resources of the federal government. It powers the American Dream. And the SBA is working to make that dream accessible to more Americans by modernizing its application processes, improving online resources, and streamlining how technology is used to deliver services more efficiently and effectively.

National Small Business Week honors entrepreneurs who have used these resources to make their lives and their communities better. And the SBA shines a light on their achievements, I hope it will illuminate the path for even more aspiring entrepreneurs following in their footsteps.


Linda McMahon serves as the 25th Administrator of the U.S. Small Business Administration. As a member of President Trump’s cabinet, she advocates on behalf of the 30 million small businesses in America, which employ nearly half of all American workers and account for 56.8 million jobs.

 

April Policy Watch #HillUpdate: The House Has Been Busy Tackling IRS Reforms, Financial Rules, the Next NDAA & More

HSBC Chairman Chabot Urges Inclusion of Small Business Bills in FY19 NDAA

Last week before the House Committee on Armed Services, Chairman Steve Chabot of the House Small Business Committee urged members to incorporate a package of 13 bipartisan small business bills in the FY 2019 National Defense Authorization Act. The bills include legislation addressing SBA loan programs and technical assistance programs such as Women Business Centers, small business lending, cybersecurity, government contracting, and other issues impacting small business.

Read a full accounting of bills included in the package can be found here.

Watch Chairman Chabot’s testimony.

Legislation to Reform & Modernize the IRS Makes it Out of House Ways & Means

The House Ways and Means Committee last week approved the passage of the Taxpayer First Act (H.R. 5445), legislation sponsored by Oversight Subcommittee Chairman Lynn Jenkins (R-KS) and ranking member John Lewis (D-GA). The bill would improve the independent appeals process, taxpayer services and enforcement. It also updates the IRS and Tax Court structure.

Click here to learn more about the legislation and other recent bills relating to IRS reform passed out by the House Ways & Means Committee.

House Passes Bill to Ease Financial Regulations with Goal of Improving Lending

The House approved H.R. 4790, the Volcker Rule Regulatory Harmonization Act by a vote of 300-104. The legislation would exempt banks with total assets of $10 billion or less and comprised of 5% or less of trading assets and liabilities from the Volcker Rule. The rule prohibits banking agencies from engaging in proprietary trading or entering into certain relationships with hedge funds and private-equity funds. The bill would also grant exclusive rulemaking authority under the Volcker Rule to the Federal Reserve Board. The intent of the legislation is to alleviate the compliance burden on small banks, which would help improve capital markets and lending, especially to small business.

Read more

With Possible Trade War Looming, HSBC Holds hearing on the State of Trade for Small Business

The House Small Business Committee heard from a panel of business owners and experts on the state of international trade for small businesses. The hearing’s focus was the State Trade and Export Promotion (STEP) Grant Program and the federal government’s overall efforts to increase small business exports. However, with tariffs proposed by the administration and discussion of a possible trade war with China, witnesses highlighted how recent activity would impact their businesses and small business exporters at large.

Read submitted testimony or watch the full hearing here.

April Policy Update

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FY2018 Omnibus Spending Package Signed into Law

On March 23, President Donald Trump signed a $1.3 trillion omnibus spending bill for FY2018—10 percent higher than FY2017 due to the budget agreement reached last month by lawmakers.

The Small Business Administration (SBA) received $18 million less than in FY2017.  SBA received $247 million for entrepreneurial development grants including $130 million for Small Business Development Centers; $18 million for Women’s Business Centers; and $11.5 million for the SCORE program. SBA’s business loan program will have new authority to guarantee $29 billion in 7(a) loans.

For government contractors, passage of this bill means a compressed procurement and grant cycle. The new Fiscal Year started in October but has just now been funded. That means agencies have one quarter instead of four to procure goods and services.

Here is a chart of WIPP’s FY2018 appropriations requests and what was included in the FY2018 Omnibus bill signed by the president.

FY2018 Entrepreneurship Funding Update

Small Business Administration – Financial Services and General Government Appropriations

Program FY17 Enacted FY18 WIPP Requests  

FY18 Omnibus

Microloan Program:  Lending $44 million $44 million  

$36 million

Microloan Program:  TA $31 million $31 million  

$31 million

PRIME $5 million $10 million $5 million
Women’s Business Centers $18 million $21.75 million  

$18 million

SBA Office of Advocacy $9.22 million $9.3 million  

$9.12 million

 

Small Business 7(a) Lending Oversight Reform Act of 2018 Unanimously Approved in Both the House & Senate Small Business Committees.

Legislation (H.R.4743/ S.2283) to increase the Small Business Administration’s (SBA) oversight authority over the 7(a) loan program for the purpose of improving the efficiency and reach of the program, passed both the House and Senate Small Business Committees. The Small Business 7(a) Lending Oversight Reform Act of 2018 would:

  • Strengthen SBA’s Office of Credit Risk Management by outlining in statute the responsibilities of the office and the requirements of its director
  • Enhance SBA’s lender oversight review process, including increasing the office’s enforcement options
  • Require SBA to detail its oversight budget and perform a full risk analysis of the program on an annual basis
  • Strengthen SBA’s Credit Elsewhere Test by clarifying the factors that must be considered

Read the House Small Business Committee’s Press Release here.

Chabot Supports Bill to Ensure Small Contractors Get Paid Quickly

House Small Business Committee Chair Steve Chabot (R-OH) released a statement recently in support of Rep. Steve Knight’s (R-CA) bill, the Accelerated Payments for Small Businesses Act, encouraging federal agencies to make payments to small business prime contractors within 15 days of sending an invoice.

Read Chair Chabot’s statement here.

National Small Business Week Virtual Conference

SBA has partnered with the SCORE Association to offer a NSBW Virtual Conference which will take place May 1- May 3, between 12:30pm ET and 6:30pm ET each day. The conference will offer 12 educational webinars, mentoring sessions, networking opportunities and resources in a three-day event. You will hear from industry experts, such as Visa, Google, Chase, Constant Contact, Square and more. They will share insider tips on various aspects of online marketing, financing, customer service, cybersecurity among other topics.

Register for the NSBW Virtual Conference here.

SBA Office of Advocacy to Host a Regulatory Reform Roundtable and a NAFTA Outreach Meeting in Atlanta

Next week, the SBA Office of Advocacy will be hosting a Regulatory Reform Roundtable and a NAFTA Modernization Outreach meeting for small business owners in order to gain insight into which specific federal regulatory burdens present the biggest barriers to small business growth and get input on possible NAFTA changes.

Meeting will be held:

  • Tuesday, April 10, 2018: Regulatory Reform Roundtable at 8:30am with a special focus on environmental regulatory issues at 2pm
    • Location: GTRI Conference Center, 205 14th Street, NW, Atlanta, GA
  • Wednesday, April 11, 2018: NAFTA Modernization Outreach meeting at 9:00 a.m. for small business owners.
    • Location: Georgia Department of Economic Development, 75 5th Street Northwest, 10th floor, Atlanta, GA.

To register for these meetings, visit SBA’s website.

National Women’s Business Council Releases Reports on Crowdfunding

The National Women’s Business Council released two new research reports on success factors for women business owners access to small business finance, finding that the first 30 days of crowdfunding campaigns matter the most and personal stories play a vital role in reaching fundraising goals. The reports also showed that while it helps to have large network, the way you leverage that network to help you with funding your business is equally important to your success at raising money.

Read the press release and access the reports here.

WIPP Works in Washington: The Complicated Business of Changing Investment Behavior

I don’t know if you watch the Oscars, or like me, go to a party having barely seen any of the movies. I am usually pretty bored with the thank-you speeches from the winners, but this year one acceptance speech got my attention. It was the speech from the winner of

Anne Sullivan

Ann Sullivan, WIPP Chief Advocate

Best Actress, Frances McDormand, for her role in “Three Billboards Outside Ebbing, Missouri.” Referencing women in the audience who “had stories to tell and projects to finance,” she said, “don’t talk to us at the parties tonight, invite us to your office in a couple of days…and we’ll tell you all about them.” She asked the women to stand and told Meryl Streep, “if you do it they’ll all do it.”

The speech caught my attention because women entrepreneurs in all industries including Hollywood share the same vexing problem—access to capital. A damning statistic, women only receive 4% of all commercial loan dollars and 2% of venture capital, shows women entrepreneurs struggle with obtaining adequate capital. Yet, over 36% of businesses are women-owned and are growing at four times the rate of businesses owned by men, so it appears there is no shortage of women seeking operating or investment capital.

Asked why women get so little VC money in Fortune article, Julie Wainwright, founder and CEO of a consignment website The RealReal, thinks it comes down to the lack of female VCs. “When you have different businesses that aren’t proven that may appeal more to a female [customer], a female investor is going to be able to evaluate that” better than a male investor could, she says. “I think in general, most VCs are trying to do their jobs, but there are a lot of unconscious biases.”

A study from Harvard Business Review also points to an additional reason for this deficit—male and female entrepreneurs are asked different questions by VCs, which in turn affects the level of funding they receive. According to the study, when investors asked male entrepreneurs questions they used a promotion orientation, meaning they focused on their hopes and achievements. Alternatively, when questioning women entrepreneurs, they mostly used a prevention orientation, which focused on questions regarding responsibility, security and vigilance. Researchers found that this has a substantial impact on funding outcomes, thus helping to explain the large disparity in VC funding for women entrepreneurs.

Given these barriers, why are so many women starting businesses? It seems to boil down to two reasons: they were either inspired or frustrated. Inspired because they had a good idea, built a better “mousetrap” or decided to create wealth for their families by taking the risk of entrepreneurship. Frustrated because they weren’t getting equal pay for equal work, were tired of a hostile work environment or saw no ability to advance.

A case study by the National Women’s Business Council highlights both of these. The study examined reasons why women become necessity entrepreneurs and of the nine women interviewed, eight cited gender-specific issues, thus making entrepreneurship a necessity. The study also highlights the financial need as the driver to start businesses. “I can relate to many of these women because I’m a prime example of a necessity entrepreneur,” said Kari Warberg Block, NWBC council member and founder and CEO of EarthKind®. “I was fresh out of alternatives with no job options, and I had to do something, anything, to take care of my family. I had an idea to create a safe, natural option for pest control, and 10 years later that has turned into a $20 million-dollar business.”

What are some of the solutions to this vexing problem? Unfortunately, there is no silver bullet but rather a host of solutions necessary to turn this tide. For starters, investors and lenders can start asking the right questions and including women in their review process. Women who sit on the boards of these companies can monitor lending/investing in women-owned companies. And on the policy front, WIPP’s Economic Blueprint suggests a host of policy changes that will help.  They include understanding the data from lending institutions with respect to lending to women, freeing up a regulatory environment that discourages smaller banks from lending to small businesses and developing a track for women to become investors through government backed programs like the Small Business Investment Companies. Lastly, Congress should require a comprehensive review of the Small Business Innovation Research program, which awards only 16% to women.

Even though access to capital for women business owners requires changing cultural biases and policies, all of us can start by educating those around us. If one of us stands up, everyone will stand.

Need For 7(a) Lending Addressed in CR

WIPP and SBALinda 2.jpgAdministered by the Small Business Administration, the 7(a) loan program is a loan guarantee program designed to encourage lenders to provide loans to small businesses that might not be able to otherwise obtain financing. During the first half of FY17, the 7(a) loan program saw an increased demand with approvals 9% higher than in the first half FY16. This lead Congress to include an appropriations provision to increase the program’s authorization limit to $27.5 billion for FY17 from $26.5 billion in FY16.

The just passed continuing resolution to fund the government included a provision on the program. It authorized SBA to use more funding so they could administer the 7(a) program with increased demand.

Government Shutdown Comes to an End

capitol building.pngAfter a three-day shut down, Senate leaders reached an agreement to fund the government through February 8. The Senate voted 81-18 to pass the measure, shortly followed by the House, which passed it 266-150. The deal was based on a commitment by Senate Majority Leader Mitch McConnell (R-KY) to find a solution for Dreamers to remain in the U.S. until February 8. The agreement includes:

  • Authorizes the Small Business Administration to shift funding to administer increased 7(a) loan demand
  • Delays the re-implementation of the Obamacare medical device tax through 2019
  • Delays the re-implementation of the tax on “Cadillac” health plans through 2022
  • Suspends the Obamacare tax on insurance providers for 2019
  • A provision to provide back pay to workers who were briefly furloughed
  • A six-year extension of the Children’s Health Insurance Program (CHIP)

The continuing resolution (CR) includes other provisions which can be found here.

This is the fourth CR for FY18. As a reminder, a CR funds the government at current levels, in this case, FY17 levels. Having trouble keeping track of the CRs for FY18? See below.

CRs for FY18

  • September 30, 2017: First Deadline for FY18 – CR extended funding through December 8, 2017 (passed by Congress on September 8)
  • December 8, 2017: Second Deadline for FY18 – CR extended funding through December 22, 2017 (passed by Congress on December 7)
  • December 22, 2017: Third Deadline for FY18 – CR extended funding through January 19, 2018 (passed by Congress on December 21)
  • January 19, 2018: Fourth Deadline for FY18 – CR extended through February 8, 2018 (passed by Congress on January 22)
    • Note: The House passed a CR on January 18 to fund the government through February 16. After House passage, the Senate amended the CR by changing the expiration date from February 16 to February 8 and including the back-pay provision. The Senate then passed the amended bill yesterday afternoon, with the House following suit on January 22.  President Trump signed the bill into law that night.
Members Answer WIPP’s Call to Action!
On January 19, as the Senate was trying to find a way to keep the government open, we issued and Action Alert asking WIPP members to contact their senators about the shutdown. We’re proud to report that the Action Alert resulted in nearly 50 letters sent to Senators urging them to keep the government operating and telling them that shutdowns are bad for women business owners.
Thank you for making your voice heard and watch for future opportunities to engage!

2017: A Banner Year for WIPP & Women Business Owners

WIPP was busy this year educating policymakers, women business owners, the media and the public about what women business owners need to succeed. From bringing women entrepreneurs directly to some of the most powerful lawmakers in the country, to meeting women entrepreneurs where they live and do business to educate them on how to bolster their businesses, WIPP was at the forefront of issues impacting women in business in 2017.

A sampling of our (many) accomplishments are highlighted below:

Educating Thousands of Women Business Owners Nationwide

  • WIPP held 12 ChallengeHER events in cities across the country, training more than 2,100 women on the best practices for success in federal contracting; including 5 match making events with federal agencies and primes.  WIPP has educated more than 10,000 attendees through its classes that range from those who are new to the process to those highly experienced. Learn more about ChallengeHER, and read about some of the success stories that have come out of the program.
  • WIPP produced 30 Give Me 5 training webinars increasing the free, on-line curriculum to approximately 120 downloadable recordings.  Reaching over 3,000 people this year, these training webinars were taught by industry specialist and federal contracting experts.
  • More than 200 women business owners joined WIPP and Chicago Treasurer Kurt Summers for a discussion on venture funding and women owned small business. The discussion explored how to encourage venture capital investment in women, the process of lending for SBICs, and how women business owners can approach venture capitalists.

Impacting Policy at the Highest Levels

  • The president signed the 2018 National Defense Authorization Act (NDAA) into law, which includes a provision directing the Small Business Administration to study small business participation on Multiple Award Contracts. The SBA study is in response to a WIPP report revealing that women small business owners are being shut out of large government contracts. Learn more about WIPP’s study.
  • WIPP surveyed 515 WIPP-affiliated women business owners nationwide on how they use the tax code and worked with American University’s Kogod Tax Policy Center to use the survey data to research how the tax code impacts women business owners. The survey data – together with Kogod’s review of existing tax research on the topic – suggests that many women-owned companies are unable to fully access more than $255 billion worth of tax incentives Congress has designed to help small businesses. The study was picked up exclusively by the Associated Press and was featured in hundreds of papers across the country. Learn more about the report in an op-ed WIPP President Jane Campbell authored in Entrepreneur magazine.
  • WIPP brought women business owners to Washington to testify at tax hearings and help inform the framework for the House Small Business agenda.
  • WIPP’s Economic Blueprint, which outlines a range of economic policy recommendations lawmakers can follow to help women entrepreneurs thrive, was featured in Forbes. Read WIPP President Jane Campbell’s op-ed outlining WIPP’s Economic Blueprint in The Hill.
  • WIPP secured powerful politicians to speak at WIPP’s annual conference so they could hear directly from women business owners on what they want out of Washington. Lawmakers included House Ways and Means Chairman Kevin Brady (R-TX), Sen. Joni Ernst (R-IA), House and Senate small business committee tax experts and Senate Small Business Committee leadership.
  • WIPP’s advocacy efforts throughout the tax reform debate—which included submitting comments to the Senate Finance Committee urging parity for pass through entities and repeal of the estate and AMT taxes—were instrumental in securing a pass-through carve out, along with the agreement to double the estate tax exemption from the current $5.6 million per individual to $11.2 million ($22 million for couples). WIPP members authored op-eds, letters to the editor and did interviews with reporters on the issue to ensure the women-owned business perspective was breaking through.
  • WIPP’s advocacy team worked to maintain funding for programs important to WIPP, such as the Women’s Business Centers, microloan lending programs and more.
  • WIPP submitted testimony to Congress and statements to the media urging stability of the small business health insurance marketplaces and that Congress keep in place a pooling mechanism for small businesses to buy health insurance.
  • WIPP encouraged the Consumer Financial Protection Bureau to support the implementation of Section 1071 of the Dodd-Frank Act requiring financial institutions to gather and report data on small business lending, including applications made by women and minority owners. Read our press statement and our comments to the CFPB.
  • WIPP supported the Promoting Women in Entrepreneurship Act.
  • WIPP was mentioned in more than 60 news articles in 2017, ensuring the women business owner perspective was heard throughout national debates around tax reform, the federal budget, entrepreneurship and more. We had articles in Forbes, Entrepreneur Magazine, Financial Times, The Hill newspaper, The Atlantic, the Business Journals, Reuters, the Associated Press, Morning Consult, Bloomberg, the Chicago Tribune, NBC and many more.

Supporting Small Businesses on Small Business Saturday

  • 2017 saw record support from business organizations through the Small Business Saturday Coalition, the national grassroots initiative that WIPP leads to promote Small Business Saturday, with more than 575 organizations nationwide supporting small businesses on Small Business Saturday—an 18% increase over previous years.
  • Organizations WIPP engaged to support Small Business Saturday included the National Retail Federation, Association of Women’s Business Centers, U.S. Black Chambers, Inc., and SCORE, as did local organizations such as the Chicago Public Library, San Francisco Chamber of Commerce, Main Street Iowa and many, many others.
  • WIPP’s leadership around the Small Business Saturday Coalition was instrumental in promoting 7,200 events and activities celebrating Small Business Saturday nationwide, engaging more than 2.2 million small businesses.
  • The Coalition secured 653 mayoral proclamations in support of Small Business Saturday nationwide and ensure numerous public service announcements were issued promoting the day.
  • WIPP secured passage of a Senate Resolution designating Small Business Saturday and introduction of House Resolution and engaged 240 Members of Congress in Small Business Saturday activities.

WIPP’s NSBW Photo Contest Runner-Up, Rockin’ Bakers, Offers a ‘Breaducation’

A veteran of the consumer packaged goods industry, Daymara Baker had a vision for creating a business that puts a social mission above profit. Founded two years ago, Rockin’ Baker Academy in Fayetteville, Ark., serves up tasty treats while providing a “

RockinBakers.jpg

Founded two years ago, Rockin’ Baker Academy in Fayetteville, Ark., serves up tasty treats while providing a “breaducation” for workers who have a hard time entering the job market due to poverty, intellectual disabilities, or other disadvantages.  The entrepreneurial nonprofit provides training on food safety and baking, as well as “soft skills” such as teamwork, accountability, communications and customer service. Rockin’ Baker Academy was runner-up in Women Impacting Public Policy’s photo contest for National Small Business Week this spring.

“I wanted to do something that would sell but that also would be welcomed by the community,” Daymara said. “There needed to be a place for people who have a hard time finding a job and needed a second chance.”

 

Daymara founded a 501c3 nonprofit organization and a 501c4 public-benefit corporation that funnels proceeds from the bakery to the nonprofit. The 501c4 organization allowed her to seek a small-business loan to jumpstart the project, which opened with a storefront in November 2016. After just eight months in operation, Rockin Baker has three full-time employees, one part-time worker and a volunteer.

Beyond her enterprising spirit, Daymara said being a woman has contributed to her success in opening a socially minded business. “As women, we have a higher level of empathy,” she said. “By nature, we are more emotionally connected to what we are trying to achieve.”

Because the academy is a virtually unheard-of concept locally, Daymara said the bakery is developing a loyal customer base that not only eats, but donates. The project also has expanded to offer over-the-counter breakfast and lunch goods.

“When they learn why I am doing this and that we are not just a bakery, they are feeling good about themselves because they are helping somebody else,” she said.

For more information, visit rockinbakeracademy.org.