In the News: SBA Certifies Record Number of Diverse-Owned Small Businesses

The Small Business Administration (SBA) has announced a record-breaking milestone, certifying over 17,000 diverse-owned small businesses in the fiscal year 2023. This marks a significant 40% increase from the previous year, highlighting the agency’s efforts to expand access to federal contracting opportunities.

A Surge in Certification

The SBA’s certification programs are designed to support women, veterans, socially disadvantaged business owners, and businesses in historically underutilized areas. This year, the agency certified more small firms than ever before, providing them with the opportunity to compete for federal contracts.

Record Federal Contract Awards

In fiscal year 2023, small businesses received $178.6 billion in federal contracts, surpassing the previous year by $15.7 billion. This represents an all-time high in contract awards for small businesses, reflecting the SBA’s expanded efforts to ensure that a significant portion of government contracts benefit smaller enterprises.

Projections for Fiscal Year 2024

The SBA projects that over 28% of federal contracts will be awarded to small businesses in fiscal year 2024. This consistent allocation aims to continue providing substantial opportunities for small firms to secure government contracts.

New Certification Platform

To streamline the certification process, the SBA has introduced a new online platform. This tool simplifies the application process, making it more accessible for small businesses seeking certification.

Proposed Expansion of the Rule of Two

The SBA is also advocating for an expansion of the Rule of Two, which requires federal agencies to set aside contracts for small businesses when at least two are expected to submit competitive offers. The proposed change would allow more multi-award contracts to be earmarked for small businesses, potentially generating up to $6 billion more annually for these firms.

Opportunity for Public Comment

Business owners and stakeholders are invited to provide feedback on the proposed Rule of Two expansion. Comments can be submitted through the Federal Register until December 24, allowing the public to contribute to shaping the future of federal contracting policies.

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