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Feds & SBA Break Record on Small Business Set-Asides in FY2022

Feds & SBA Break Record on Small Business Set-Asides in FY2022

7-25-23

In a recent announcement, Small Business Association (SBA) Administrator Isabella Casillas Guzman revealed that the Biden-Harris Administration achieved a significant milestone by surpassing its small business contracting target of 23% in fiscal year (FY) 2022. They awarded a record-breaking 26.5% of federal contract dollars to small businesses, marking an all-time high.

This achievement reflects a substantial investment of $162.9 billion into the small business economy, signifying an impressive $8.7 billion increase compared to the previous fiscal year. The Administration’s commitment to supporting small businesses has yielded noteworthy results and holds great promise for the growth and prosperity of these enterprises.

Out of the federal agencies assessed, ten of them were awarded an “A+” for their exceptional achievements in small business contracting. Additionally, another ten agencies received a commendable “A” grade for their efforts in this area. The overall performance of the federal government on this year’s government-wide scorecard was deemed as excellent, earning an overall grade of “A.” This recognition highlights the government’s commitment to supporting and promoting small businesses in their contracting endeavors.

Once again, Small Disadvantaged Business (SDB) spending has surpassed its 11% goal for the second consecutive year. Exceeding its 3% goal, service-disabled veteran-owned small business spending has reached 4.6%. This milestone translates to a procurement amount of $28.1 billion, or a $3 billion increase in spending compared to the previous year. Historically Underutilized Business Zone (HUBZone) small businesses were granted $16.3 billion in federal contract awards, setting a record for this category within the program’s history. Although not meeting the 3% statutory goal, the federal government demonstrated progress in its support of HUBZone small businesses.

For the fourth consecutive year, Women-owned Small Businesses (WOSB) secured a sum of over $26 billion. They accounted for 4.6% of the total eligible dollars in FY 2022, coming close to the 5% target. The overall dollars granted to WOSBs saw substantial growth, rising from $26.2 billion in Fiscal Year 2021 to $28.1 billion in Fiscal Year 2022. The surge in growth can be attributed to two key factors: First, the expansion of certified WOSB firms, which saw an increase from approximately 1,000 to nearly 6,000. Second, the widening of NAICS codes, enabling more women-owned businesses to qualify for set-aside awards. These changes together have played a pivotal role in fostering greater opportunities and inclusivity for women entrepreneurs in various sectors, driving the progress observed in this domain.

To find contracts specifically targeted to small business, 8(a), HubZone, WOSB and SDVOSB companies, as well as find companies entering or graduating from the 8(a) program, get started with a 5-day trial of EZGovOpps for full access.

sba small business set asides 2022 8a wosb sdvosb

Small business set-aside goals from SBA.org 2023

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