(The Center Square) – The White House announced the new measures Friday to aid small and disadvantaged businesses, including expanding access to federal contracts, providing targeted technical assistance, and increasing transparency in government spending.
The initiatives push to simplify access to the $700 billion allocated annually in federal contracts.
This announcement comes ahead of Small Business Saturday, an annual event that encourages Americans across the country to support local small businesses on the Saturday following Thanksgiving.
The key actions include new guidance from the Office of Management and Budget encouraging agencies to simplify access for small businesses to high-value contracts and improve strategies like multiple-award contracts by improving forecasting of upcoming federal contracting opportunities for small businesses to compete against larger businesses.
The Small Business Administration will also revamp its “Empower to Grow” program to offer personalized technical support and networking opportunities to businesses pursuing federal contracts. Two current qualifications for small businesses are that they must be located in areas of high unemployment or low income and owned by low-income individuals.
The Office of Budget Management is increasing access to federal subcontracting opportunities for Small Businesses by issuing guidance to federal agencies on different ways to expand subcontracting opportunities. Small businesses received $86 billion in awards in 2023.
Another action listed is expanding caps on critical lending programs. Active lenders in good standing will see an increase from $350,000 to 500,000 by their Community Advantage Small Business Lending Companies.
The Biden Administration announced in January a goal of 15% of federal contracting dollars going to small disadvantaged businesses by FY 2025, a 50% increase since he took office. Small disadvantaged businesses received 12.1% of federal contracts, totaling a record $76.2 billion in FY 2023.
This article was originally published at www.thecentersquare.com
