The Biden-Harris Administration has announced a record-breaking allocation of federal contracts to small businesses, totaling over $183 billion for the fiscal year 2024. This marks the fourth consecutive year of growth in this area, with small businesses receiving 28.8% of all federal contracting dollars. The U.S. Small Business Administration (SBA), led by Administrator Isabel Casillas Guzman, confirmed these figures and highlighted that the awards surpassed the government's 23% small business contracting goal.
"Four straight years of increased small business contracting opportunities reflects the Biden-Harris Administration’s commitment to leveling the playing field for small businesses looking to do business with the federal government – the world’s largest buyer of goods and services," said SBA Administrator Guzman.
Preliminary data also indicates that disadvantaged businesses received $78.1 billion, while service-disabled veteran-owned small businesses were awarded $32.8 billion—both record amounts. Other categories tracked similarly saw increases in federal contracts.
Under Guzman's leadership, there has been a focus on expanding access to federal contracts and modernizing processes to enhance competitiveness among small businesses. Recent initiatives include launching MySBA Certifications and GovCon Match tools to simplify certification processes and connect businesses with potential government buyers.
Additionally, SBA has proposed regulatory changes aimed at increasing participation in multiple-award contracts and subcontracting opportunities for small businesses. New training programs have also been introduced under the Empower to Grow Program for disadvantaged and veteran-owned firms.
Looking forward, SBA released FY25 agency contracting goals emphasizing President Biden's objective of achieving a 15% allocation for small disadvantaged businesses by 2025. The administration is also working on promoting transparency through disaggregated data tracking contracts with minority-owned firms across various racial and ethnic categories.