Commerce Secretary Carlos Gutierrez has approved specifications for smart identification cards that will eventually be issued to federal employees and many contractors.

President Bush’s Homeland Security Presidential Directive tells agencies to have the systems in place by Oct. 25 “to the maximum extent practicable.” However, most agencies probably will not begin issuing the cards until next year.

The cards will be used for physical and IT systems access, but not in national security systems and facilities.

Commerce’s National Institute of Standards and Technology developed the standard, specifying the technical and operational requirements for the access systems.

African American-owned businesses are more likely to fail and less likely to expand than firms owned by whites and by other minorities, according to a report released by SBA’s Office of Advocacy.

Tracking businesses from 1997-2001, the report found 61% of African American firms survived for the four years, compared to 73% of non-minority businesses, 72% of Asian and Pacific Islander-owned firms, 69% of Hispanic-owned and 67% of American Indian and Native Alaskan-owned.

During the same four years, 27% of non-minority businesses expanded, compared to 26% of African American firms. The report found expansion by 34% of Hispanic-owned firms, 32% of Asian and Pacific Islander-owned, and 28% of American Indian and Native Alaskan-owned businesses.

The full report is available at www.sba.gov/advo/research/rs251tot.pdf.

The U.S. Postal Service is preparing to ask for a rate increase of at least 6% next year, The Nonprofit Times reported.

That is about half the increase that direct mailers had been anticipating.

Congress is considering legislation to restructure the Postal Service and its retirement system. Industry officials said the cost of pensions is the main reason a rate increase is needed.