Celebrating Innovation and Opportunity: The Rise in Federal Procurement for Small Businesses
In the dynamic landscape of U.S. small businesses, recent developments have underscored the government's commitment to nurturing growth and fostering innovation. With the Biden-Harris Administration at the helm, we're witnessing an unparalleled surge in federal support that could transform the prospects for small enterprises, particularly those that are disadvantaged or veteran-owned. Here’s an insightful look into these developments and actionable tips on how government contracting professionals can leverage these opportunities.
A Historic Leap in Federal Procurement
During National Small Business Week, the Administration proudly announced record-breaking achievements in federal procurement. Small businesses have now received a staggering $178.6 billion in federal contracts, accounting for 28.4 percent of all contracting dollars, a historic high. This includes $76.2 billion directed to Small Disadvantaged Businesses (SDBs) and $32 billion to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs).
This focused investment not only promotes diversity in entrepreneurship but also plays a critical role in narrowing wealth disparities and boosting economic activity across various sectors. The strategic increase in contracts awarded to SDBs and SDVOSBs is not just a boon for these businesses but also for the broader economy, supporting jobs in manufacturing, technology, construction, and more.
How Can Small Businesses Tap into These Opportunities?
Understand the Procurement Process: Familiarize yourself with the federal procurement procedures. Resources such as the SBA’s Government Contracting Classroom provide comprehensive training on navigating this space.
Get Certified: Ensure your business is properly certified as an SDB or SDVOSB. This certification can be a gateway to more contracting opportunities and exclusive government set-asides.
Leverage the SBA’s Programs: Engage with the Small Business Administration’s numerous programs, which are designed to facilitate access to federal contracts. The SBA’s 8(a) Business Development program, for instance, offers a slew of assistance to small disadvantaged businesses.
Stay Informed on Policy Changes: With the administration pushing significant policy reforms to boost small business support, staying updated on these changes can give you a competitive edge.
Capitalizing on Financial Assistance
The Biden-Harris Administration has also made impressive strides in expanding access to capital—a critical element for small business success. The number of small-dollar loans has nearly doubled under the current administration, with significant increases in funding from the SBA’s flagship 7(a) loan program.
Steps to Maximize Financial Support
Evaluate Your Needs: Assess your capital needs realistically and explore various funding options available through SBA lending programs.
Apply for Small Dollar Loans: If your business needs are modest, consider applying for small-dollar loans, which have seen increased approval rates and amounts.
Utilize the Lender Match Tool: SBA’s revamped Lender Match tool can help you connect with lenders ready to finance small businesses, making it easier to find suitable funding options.
Tap into State and Local Programs: Beyond federal initiatives, look into the State Small Business Credit Initiative (SSBCI), which provides states and territories with funds to support small businesses through loans and investment programs.
As we step into a promising era of small business support, the record-high federal procurement and enhanced access to capital are game changers. For small business owners and government contracting professionals, understanding and leveraging these advancements can lead to unprecedented growth and opportunities. Stay engaged, be proactive, and harness these resources to not only survive but thrive in the competitive landscape of government contracting. Reach out to us at https://squaredcompass.com to learn more.
If you aren't a Squared Compass partner, what are you waiting for? From getting your business set up with specific government set aside programs at both the State and Federal level, to being empowered by a Fractional Capture team, Squared Compass delivers immense value which helps propel our partners to success. Schedule a time to chat with our team today.
