February 10, 2026 – Acknowledging a past where women routinely faced discrimination in securing business loans, advocates are reflecting on the 1988 Women’s Business Ownership Act and the decades of work that preceded it. Virginia Littlejohn, a key figure in the fight for equitable lending practices, recalls a time when a male co-signer was often a mandatory requirement for women seeking to launch or expand their businesses, even after the passage of the Equal Credit Opportunity Act in 1974.
Littlejohn’s involvement with the National Association of Women Business Owners (NAWBO) dates back to its formative years. She served as NAWBO’s national president from 1984 to 1985 and has remained a dedicated member, contributing to numerous milestones in the organization’s history. Her journey began in the Bay Area during the 1970s, where she was a founding member and later president of San Francisco Women Entrepreneurs. She also advised the Small Business Administration’s (SBA) Office of Women’s Business Enterprise, offering recommendations to President Jimmy Carter’s Interagency Task Force on Women’s Business Enterprise.
The struggle for equal access to capital culminated in the push for the Women’s Business Ownership Act, also known as H.R. 5050. Littlejohn and others strategically planned hearings to expose the difficulties women faced, aiming to demonstrate the absurdity of requiring a male co-signer for a loan. “We could barely believe what we had pulled off,” Littlejohn recalled, reflecting on the eventual passage of the legislation.
The 1988 Act addressed multiple barriers to women’s entrepreneurship. It established the National Women’s Business Council, a bipartisan body tasked with advising the President and Congress on economic issues impacting women business owners. The law also created a national network of Women’s Business Centers, designed to provide assistance to women starting and growing their businesses. It extended the Equal Credit Opportunity Act to explicitly protect women against discriminatory lending practices.
According to NAWBO, the legislation “ushered in a transformation in women’s enterprise development.” Billie Dragoo, NAWBO chair, stated that the Act provided women entrepreneurs with “long overdue access to capital, education and technical assistance offered in a woman’s voice.”
The impact of the law is still felt today, though many current women business owners are unaware of the obstacles their predecessors overcame. One instance recalled by Littlejohn involved a woman who, lacking a husband or father to co-sign, was forced to request her 17-year-old son – who was not yet eligible to vote – to serve as a guarantor for her business loan.
As of today, the National Women’s Business Council continues to operate, providing analysis and recommendations to policymakers. The network of Women’s Business Centers remains active across the country, offering resources and support to women entrepreneurs. NAWBO has announced plans to host a series of events throughout 2026 commemorating the 40th anniversary of the Women’s Business Ownership Act, but details regarding specific speakers and policy discussions remain forthcoming.
