WASHINGTON, D.C. — In a series of new initiatives aimed at supporting small businesses across the country, the Biden-Harris Administration announced significant actions this week to increase access to capital and federal contracting opportunities. These moves are designed to help small businesses, particularly those in underserved communities, thrive and compete in the federal marketplace.
With Small Business Saturday just around the corner, the White House unveiled several key measures by the Small Business Administration (SBA) and the Office of Management and Budget (OMB) to provide more resources and opportunities to America’s small business sector. These actions are part of a broader strategy to ensure that small businesses continue to be a driving force in the U.S. economy.
Expanding Lending Opportunities for Underserved Businesses
The SBA is increasing the cap on its 7(a) loan program for Community Advantage Small Business Lending Companies (CA SBLCs) from $350,000 to $500,000. This change will make it easier for small businesses, particularly those owned by women, minorities, veterans, and individuals from rural or low-income communities, to access crucial capital from mission-driven lenders like Community Development Financial Institutions (CDFIs). This move builds on earlier efforts by the Biden Administration to support small businesses, including making the CA SBLC program permanent after its successful pilot under the Obama-Biden Administration.
Boosting Federal Contracting Opportunities for Small Businesses
In addition to expanding access to capital, the Biden-Harris Administration is working to help small businesses compete for federal contracts. The OMB issued new guidance to federal procurement officials aimed at improving forecasting of upcoming contract opportunities. By ensuring better alignment of timelines and expectations, the guidance will make it easier for small businesses to plan and prepare their proposals in advance, increasing their chances of securing government contracts.
The OMB is also taking steps to increase access to federal subcontracting opportunities. In 2023, small businesses secured a record $86 billion in subcontracting awards, a vital gateway for small businesses to compete as prime contractors. The new guidance encourages federal agencies to continue expanding these opportunities and recognizes prime contractors that exceed their small business subcontracting goals.
Strengthening Small Business Participation in R&D
The Biden-Harris Administration is also making strides in expanding the role of Small Disadvantaged Businesses (SDBs) in federal research and development (R&D). Federal investments in R&D are critical to maintaining American leadership in emerging technologies, and small businesses are playing an increasingly important role in this sector. In Fiscal Years 2022 and 2023, federal spending with SDBs for R&D contracts reached an all-time high of $2.5 billion—nearly $450 million more per year than in 2020.
To continue this progress, the SBA, the White House, and NASA have released a set of best practices for agencies to improve their outreach and use of small businesses in the R&D sector, including leveraging resources available through the SBA’s 8(a) Program.
A Record Year for Small Business Support
These actions come on the heels of the Biden-Harris Administration’s record-breaking investments in small businesses. Last year, the Administration facilitated $56 billion in SBA-backed capital for small businesses. Meanwhile, over 20 million new business applications were filed—setting a new record for any presidential term. This surge in new business activity has led to historic growth, with business ownership rates rising significantly among Black, Hispanic, Asian American, and women entrepreneurs.
“Small businesses are the backbone of our economy and the heart of our communities,” said President Biden. “These new initiatives will help ensure that small businesses in every corner of the country—urban, suburban, and rural—have the resources and opportunities they need to grow and succeed.”
Continued Commitment to Small Business Growth
These new initiatives further the Biden-Harris Administration’s ongoing commitment to ensuring small businesses thrive. Last year, small businesses received a record $178.6 billion in federal contracts, accounting for 28.4% of all eligible federal contract dollars. Small disadvantaged businesses received $76.2 billion, or 12.1% of eligible federal dollars, also a record.
As Small Business Saturday approaches, the Biden-Harris Administration continues to focus on supporting the nation’s entrepreneurs and strengthening the economic resilience of communities across the country. These latest efforts are designed to provide small businesses with the tools and opportunities they need to compete, grow, and succeed in an increasingly competitive economy.
