The Biden-Harris Administration has announced new actions to expand small business access to federal contracts. With the federal government being the largest purchaser of goods and services globally, federal contracts have the potential to empower underserved communities and ensure diverse representation. These initiatives align with President Biden’s goals of increasing the share of federal contracting dollars going to socially and economically disadvantaged individuals (SDBs) to 15% by 2025.
In recent years, the Administration has made strides towards these goals, with small businesses receiving nearly $163 billion in federal contracting dollars in fiscal year 2022, $70 billion of which was earned by SDBs. The Biden administration has prioritized supporting small businesses, and the impact is evident as the number of new business applications has surged and the share of Black and Latino households owning businesses has increased significantly.
To further support small businesses, the administration has taken the following actions:
New OMB Guidance for Federal Agencies
The Office of Management and Budget (OMB) has issued new guidance to federal agencies to enhance small businesses’ participation in high-use federal contracts. This includes strategies such as earlier engagement and planning for these contracts, allowing for the addition of businesses during the contract’s performance period, and using small business set-aside orders for competition among small businesses. These changes aim to provide more opportunities for small businesses, create a resilient federal marketplace, and ensure federal contracts benefit the American people.
Improved Technical Assistance Opportunities
The Small Business Administration (SBA) has announced significant improvements to its technical assistance program, now called Empower to Grow (E2G). This program offers customized one-on-one training tailored to small business needs and guides them through the process of pursuing government contracts. It also facilitates networking and matchmaking events between government agencies and prime contractors. In FY 2023, the E2G program supported 6,000 small businesses, resulting in a reported 45% increase in annual revenue for those businesses that received training.
These actions build upon the Biden-Harris Administration’s commitment to supporting small businesses. The SBA has expanded its lending program focused on underserved communities, made critical program changes to increase lending to underserved small businesses, and approved $7.7 billion in allocations to states and territories through the State Small Business Initiative (SSBCI). Additionally, the Minority Business Development Agency (MBDA) has invested $125 million in small business incubators and accelerators, and the SBA’s Community Navigators Program has provided critical technical assistance to secure funding for small businesses.
In conclusion, the Biden-Harris Administration continues to prioritize small business access to federal contracts. These actions aim to empower underserved communities, increase diversity in federal contracting, and foster economic growth through small businesses. With ongoing support and initiatives, these efforts will contribute to a more inclusive and resilient economy.
FAQs
Q: How much money did small businesses receive in federal contracting dollars in FY 2022?
A: Small businesses received nearly $163 billion in federal contracting dollars in fiscal year 2022.
Q: What is the Biden administration’s goal for the share of federal contracting dollars going to socially and economically disadvantaged individuals (SDBs) by 2025?
A: The Biden administration aims to increase the share of federal contracting dollars going to SDBs to 15% by fiscal year 2025.
Q: How has the Biden-Harris Administration supported small businesses in terms of lending and capital access?
A: The SBA has expanded its lending program focused on underserved communities, resulting in significant gains in lending to Black, Latino, Native, AAPI, women, and veteran entrepreneurs. The Department of the Treasury has also administered the State Small Business Initiative (SSBCI), delivering funding to states, territories, and tribal governments to spur lending and investing in small businesses.
Q: What improvements have been made to the technical assistance program for small businesses?
A: The Small Business Administration (SBA) has made significant improvements to its technical assistance program, now called Empower to Grow (E2G). This program offers customized one-on-one training, networking, and matchmaking events between government agencies and prime contractors to guide small businesses through the process of pursuing government contracts.
Conclusion
The Biden-Harris Administration’s commitment to expanding small business access to federal contracts is evident through its actions and initiatives. By providing guidance to federal agencies, improving technical assistance opportunities, and supporting lending programs, the administration is creating a more inclusive and prosperous economy. These efforts empower underserved communities, increase diversity in federal contracting, and contribute to the growth of small businesses across the country.
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