Concurrent to the sponsorship driven representations by American Express as a friend to women business owners, have been reports in USA Today of, “sharply increased rates for small-business credit cards.”


A recent twist on this captive sponsorship model involves the use of the taxpayer funded U.S. Small Business Administration (SBA) and Women’s Business Centers to create a premium, taxpayer funded marketing channel for American Express. Without congressional direction, the SBA recently required the taxpayer funded Women’s Business Centers to distribute and promote a program called, “Give Me 5.” The trade name, website domain name and funding for this program all come from American Express – which has invested heavily through significant sponsorships in several non- profits to promote the program.


All marketing materials prominently proclaim American Express’ funding as women business owners are invited to giveme5.com and govtcontracts.open.com – websites owned and controlled by American Express. As registrants take part in the programs and web based tools, American Express secures significant, detailed business information about women business owners and continue target marketing activities seeking the distribution of their credit cards.37


Credit card rates are climbing for small business owners Concurrent to the representation by American Express as a friend to women business owners have been reports in USA Today of, “sharply increased rates for small-business credit cards.” “Over the past six months, American Express, Bank of America, Capital One, Citi and Wells Fargo have raised interest rates for new small- business credit cards offered on the Internet roughly six times faster than rate increases on consumer credit card offers. On average, interest rates for small-business cards were 13.7% higher in April than last October, while rates for consumer cards, on average, were just 2.4% higher.”38


Misdirection


On average, interest rates for small-business credit cards were 13.7% higher in April than last October, while rates for consumer cards, on average, were just 2.4% higher. 38


The target-marketing process used by American Express is a classic example of misdirection.


While American Express significantly raised its interest rates on small businesses, it concurrently bought influential sponsorships and used a cozy relationship with the SBA (taxpayer funded federal programs) to advance positive views of the corporation within the small business marketplace and register women business owners at its websites for continued target-marketing.


Since none of the American Express funded women’s groups publish details of American Express’ own purchasing from women-owned firms, fair access to credit, fair treatment of women as employees or family-friendly work environments, we do not know if American Express is actively supporting women in business – or just marketing to them. Nor, do we know how fairly women business owners are being treated by American Express through their supplier diversity, credit cards and credit policies. Regardless, the use of taxpayer dollars, through the SBA funded Women’s Business Centers, is inexcusable.


Women-Led. Progress for All.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36