Women-Owned Businesses Gain Increased Access to Capital Despite Current Gender Gaps New Wells Fargo/Center for Women's Business Research Study Shows Women Business Owners Still Fall Behind Men in Availability and Use of Capital SAN FRANCISCO, March 23 /PRNewswire-FirstCall/ -- Women business owners have made strong progress in access to business capital, but continue to lag significantly behind men, according to a recent study from Wells Fargo and the Center for Women's Business Research. The study also shows that men continue to be ahead of women in use and availability of capital. "Overcoming the gender gap remains one of the greatest challenges facing women business owners today," said Joy Ott, regional president for Wells Fargo Bank in Montana and Women's Business Services Program national spokesperson. "While progress has been made, the support of public and private organizations is needed to help women business owners gain increased access to capital. We hope Wells Fargo's latest $20 billion lending goal for women business owners sends a clear and strong message that we intend to be their financial service provider of choice, and are 100% committed to helping them succeed personally and financially." While use of commercial credit by women business owners has increased, it is still lower than men business owners', even among larger firms. Similarly, the proportion of government-backed loans awarded to women business owners remains much lower than the proportion awarded to men. Women business owners are less likely than men business owners to have many types of credit. (Photo: http://www.newscom.com/cgi-bin/prnh/20050323/SFW041 ) "Women business owners' access to commercial credit increased by more than two thirds between 1996 and 2003, from 20% of women business owners using commercial credit in 1996 to 34% in 2003. This increase is even more pronounced for the larger businesses owned by women. In 2003, 56% of these businesses were using commercial credit," said Marjorie Alfus, President of Alfus Family, LP. and chair, Center for Women's Business Research. "This progress is due to financial institutions recognizing the market opportunity that women business owners present and the increased financial sophistication of women entrepreneurs." While the total number of SBA 7(a) loans for men and women grew between 2000-2004, women-owned businesses received significantly lower shares in both the number of loans as well as total dollar amounts of loans. According to the report, women-owned businesses received 22% of all 7(a) loans and only 16% total dollar volume of SBA loans in 2004. About Wells Fargo & Company Wells Fargo & Company is a diversified financial services company with $428 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, "Aaa," from Moody's Investors Service. Providing financial products and services to more than one million businesses with annual sales up to $20 million in all 50 states, Puerto Rico and Canada, Wells Fargo is the #1 lender to small businesses in the United States in total dollar volume according to the most recent CRA data (2003). The second largest national SBA lender in dollars, Wells Fargo is an SBA Preferred Lender in 28 states, and originated 3,555 loans for $495 million in 2004. Wells Fargo has also been ranked the number one SBA 504 lender nationally for the last two years. Its targeted business services programs provide outreach and education to women, African American, Latino, and Asian business owners about financial services. Since 1995, Wells Fargo has loaned more than $23 billion to women and minority business owners. Center for Women's Business Research Center for Women's Business Research is the premier source of knowledge about women business owners and their enterprises worldwide. The Center's mission is to unleash the economic potential of women entrepreneurs by conducting research, sharing information and increasing knowledge about this fast-growing sector of the economy. Since 1989, the Center has generated research-based intelligence that has helped public- and private-sector leaders, advocates, and individual women business owners make informed strategic decisions for generating greater business opportunities. The Center shares its knowledge of the economic and social aspects of women's entrepreneurship with policy makers, financial institutions, corporate leaders, government agencies, academia, and the media through research reports, press releases, newsletter publications, seminars, speaking engagements, and worldwide on the Internet at http://www.womensbusinessresearch.org/. http://www.newscom.com/cgi-bin/prnh/20050323/SFW041 DATASOURCE: Wells Fargo & Company CONTACT: Kathryn Ellis of Wells Fargo & Company, +1-415-222-4682, or Web site: http://www.womensbusinessresearch.org/ Web site: http://www.wellsfargo.com/

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