Federal grants can have a significant impact on small businesses, and some federal agencies are more successful than others in awarding these grants. The Small Business Administration (SBA) recently released its annual scorecard, which measures how well federal agencies meet their small business contracting goals. In fiscal 2023, 28.4% of contracts were awarded to small businesses, exceeding the government’s goal of 23%. This amounted to $178.6 billion in contracts, supporting over a million jobs in industries such as manufacturing, construction, and technology. SBA Administrator Isabel Casillas Guzman highlighted the importance of federal contracting in boosting the economy and providing opportunities for small businesses.
The SBA’s annual scorecard also revealed the performance of individual federal agencies in awarding contracts to small businesses. Ten agencies received ‘A+’ grades, including the SBA, Department of Agriculture, Department of Housing and Urban Development, Department of the Interior, Department of Homeland Security, and others. These agencies were successful in meeting or exceeding their small business contracting goals. However, two agencies received a ‘B,’ the lowest grade awarded, namely the Environmental Protection Agency and the Department of Health and Human Services. More detailed information on agency performance can be found on the SBA’s website.
The successful awarding of federal contracts to small businesses is a crucial component of President Biden’s Investing in America agenda. By providing a level playing field and fostering competition, small businesses can access the historic level of investments available through federal contracting. The SBA, under the leadership of Isabel Casillas Guzman, is focused on championing initiatives that support small businesses and promote economic growth. Federal contracting not only benefits small businesses but also contributes to job creation and industry development.
The annual scorecard serves as a measure of accountability for federal agencies in meeting their small business contracting goals. By exceeding the 23% threshold for small business contracts in fiscal 2023, the federal government showcased its commitment to supporting small businesses and driving economic growth. The SBA’s role in overseeing and monitoring agency performance is crucial in ensuring that small businesses have equal opportunities to compete for federal contracts. Through transparency and accountability, the SBA aims to promote fair competition and facilitate access to federal contracting opportunities.
Small businesses play a significant role in driving innovation, creating jobs, and stimulating economic growth. By awarding contracts to small businesses, federal agencies can harness the creativity and expertise of these companies to address critical needs and drive progress in various industries. The success of small businesses in securing federal contracts not only benefits the companies themselves but also contributes to a thriving economy. As federal agencies continue to prioritize small business contracting, the impact on job creation, industry innovation, and economic development is expected to be substantial.
