Qualifying as a small business can offer significant advantages under the U.S. Small Business Administration (SBA). Attaining small business status opens doors to exclusive opportunities, including lucrative reserved federal contracts. In 2023, small businesses were awarded a record 28.4% of federal contract dollars—worth $178.6 billion—exceeding the government’s 23% goal. Lawmakers are advocating for raising the small business contracting goal to 25%.
The Federal Government annually awards about 10% of its contracts to Small Disadvantaged Businesses (SDBs). In 2023, SDBs received 12.1% of contract dollars, totaling $76.2 billion, while 5.1% went to service-disabled veteran-owned small enterprises. Additionally, women-owned small businesses secured $30.9 billion in federal contracts, and HUBZone companies were awarded $17.5 billion.
Small business certification can be a game changer for companies seeking access to lucrative federal contracts. With programs like the SBA and DOT certifications, small businesses and socially and economically disadvantaged businesses can compete on a more level playing field. Understanding size standards, affiliation rules, and the certification process opens doors to substantial opportunities, including billions of dollars in set-aside contracts. Small businesses can position themselves for long-term success by meeting these requirements and staying informed. For more information on SBA programs, visit www.sba.gov.
Over the next few weeks, we’ll provide the essential information to guide you through the certification process, offer key insights into size standards and affiliation rules, and highlight how certified small businesses can tap into billions in set-aside federal contracts. By staying informed and meeting these requirements, your business can unlock tremendous opportunities and position itself for long-term success in the competitive federal marketplace.
To get started and learn more about how your business can benefit, contact Sal Schibell, CPA, CFP®, CGMA, MS Taxation, MBA, and tax partner at 732-539-7328 or salschibell@lrscpa.com. Sal is ready to help you navigate the certification process and take full advantage of available opportunities.