The U.S. Senate may derail a proposed new SBA rule affecting set-asides for women-owned businesses, according to Federal Computer Week.

The rule, intended to help federal agencies reach a goal of awarding 5 percent of federal contracts to female owners, has raised a storm of protest from women's groups and congressional leaders. That's because it would only allow set-asides to four industry areas in which the SBA says women-owned small firms don't get their fair share of federal contract dollars.

Those areas are national security and international affairs; coating, engraving, heat treating and allied activities; household and institutional furniture and kitchen cabinet manufacturing; and motor vehicle dealers. Read the proposed rule.

A provision in the Senate's version of the fiscal 2009 Financial Services and General Government Appropriations Act (S. 3260) would block the SBA from implementing the rule. It states, "None of the funds made available under this Act may be used by the Small Business Administration to implement the proposed rule relating to women-owned small business Federal contract assistance procedures published in the Federal Register on December 27, 2007."

FCW reports that the Senate bill's language would allow for a women-owned business set-aside program, but not the proposal the SBA published in the Federal Register on December 27.