The Biden-Harris Administration Announces Reforms to Level the Playing Field for Small Business Own
Less than 10 percent of federal agencies’ total eligible contracting dollars typically go to small disadvantaged businesses (SDB). Moreover, while women own roughly 20 percent of all small businesses economy-wide, less than 5 percent of federal contracting dollars go to women-owned small businesses.
The Biden-Harris Administration announces reforms to the federal procurement process to help increase the share of federal contracts to SDBs. Reforms include:
Requesting agencies to increase goals for governmentwide spending to 11 percent of contracting dollars awarded to SDBs
Implementing changes to the use of “category management” to boost contracting opportunities for underserved small businesses
Updating goals for other “socioeconomic” categories of small businesses, including women-owned small businesses, service-disabled veteran-owned small businesses, and HUBZone businesses
"Under the leadership of President Joe Biden, we’re taking 'shopping small' to a whole new level by transforming how the U.S. government—the world’s largest buyer—spends billions of America’s tax dollars on goods and services each year," said SBA's Administrator Isabella Casillas Guzman. "America is about to shop small in a very big way and put equity at the heart of how we do business. These reforms will help level the playing field for underserved small businesses. SBA is proud to have partnered with the White House, OMB, and our sister agencies on this work."