ICYMI: Small Business Leaders Applaud Reforms to Increase Equity and Level the Playing Field for Underserved Small Businesses

Last week, the Administration announced a set of reforms to the federal procurement process that will increase the share of federal spending to small disadvantaged businesses (SDBs), promote equity and narrow the racial wealth gap, and increase the number of new small businesses in the Federal marketplace. Leaders in the small business community are praising these reforms as "a catalyst for lasting changes towards increasing racial equity" and "an unprecedented commitment to meaningful action to reduce the racial and gender wealth gap."
See below for what they are saying:

United States Hispanic Chamber of Commerce: "The United States Hispanic Chamber of Commerce (USHCC) applauds the Administration's announcement today of committing to reform federal contracting with small and disadvantaged businesses. This is a critical time for the more than five million Hispanic businesses in this country. The Hispanic business community knows the difficulties in gaining access to federal procurement opportunities, especially over the past year and a half. In a May 2021 survey of small business owners done by the USHCC, in collaboration with Reimagine Mainstreet, Hispanic business owners reported federal contracting as a top policy priority. The proposal by the Administration is an important step in moving the U.S. Government towards fair and equitable solutions that will help the United States recover from the pandemic and be more inclusive of Hispanic businesses." [Statement, 12/2/21]

U.S. Black Chambers, Inc: "The U.S. Black Chambers, Inc. applauds this long-awaited initiative both at the White House and at the SBA to uncover the demographic breakdown of federal contracts awarded to Black-owned firms and increase equity and access to the federal contracting system. For years we've asked 'How can you promise increased spending with Black and minority businesses when you don't know the numbers?' While unsurprised that Black-owned firms were only awarded 1.67% of all federal contracts in FY20, we finally have the data in hand to demand measurable improvements. The USBC has called for transparency, accountability and intentionally. This data and commitment from The Administration allows us to address each of those. We will remain the active voice for small Black contractors to ensure a continued increase in the percentage of contracts they are able to secure, moving forward. The USBC recognizes this initiative as a catalyst for lasting changes towards increasing racial equity and parity in the federal contracting sector." [Statement, 12/2/21]

National Association of Women Business Owners: "The COVID-19 pandemic has challenged the resiliency of women business owners and federal contracts are an important source of revenue for many businesses in recovery. We are pleased to see that the Administration is taking steps to ensure more small disadvantaged businesses have access to federal contracts." [Statement, 12/2/21]

National ACE (Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship): "On December 2nd, 2021, the Biden-Harris Administration announced reforms to the federal procurement process to increase the share of federal contracts going to Small Disadvantaged Businesses by 50% by 2025, translating to $100 billion towards Small Disadvantaged Businesses. A Small Disadvantaged Business (SDB) is a small business that is at least 51% owned by one or more individuals who are both socially and economically disadvantaged. Businesses must be certified by the Small Business Administration to qualify for SDB status. These reforms include an increase from 5% to 11% of governmentwide spending of contracting dollars awarded to SDBs, releasing disaggregated data on federal contracting spending by race/ethnicity, and changes to category management to boost contracting opportunities for SDBs. National ACE applauds these efforts by the Biden-Harris Administration to get more dollars and contracting opportunities to minority-owned businesses. These investments will create a more even playing field in the contracting space and will help more entrepreneurs grow their businesses. National ACE President and CEO Chiling Tong added, "We are especially happy to learn that the federal government will begin to disaggregate data of federal contracting spending. Accurate data collection has long been a challenge within the AAPI community, and this measure will help us gain a clearer picture of the federal procurement process so that we can have a better understanding of AAPIs seeking and receiving federal contracts." [Statement, 12/2/21]

National Minority Supplier Development Council: "This is an unprecedented commitment to meaningful action to reduce the racial and gender wealth gap in the United States. We acknowledge that the federal government is a critically important generator of opportunity and economic activity. With less than 10 percent of current federal agencies' contracting going to small disadvantaged businesses, there is significant room for improvement and change. NMSDC has been at the forefront of creating economic opportunities for communities of color for the past 50 years. NMSDC certified minority-owned businesses generated $400 Billion annual economic output, created and sustained $2.2 million jobs. As we begin to shape our next 50-year's agenda of accelerating growth of minority-owned businesses, we are witnessing a truly remarkable moment in U.S. history, during which private and public enterprises are demonstrating an earnest commitment to inclusivity and diversity in the economy –from education initiatives to workforce development, hiring, contracting, and supporting entrepreneurship. Together, we can make significant progress in eliminating the racial wealth gap for the United States. By doing so, we will create a healthier, more productive, and competitive economy for all. NMSDC looks forward to supporting the Administration's efforts by serving as a reliable resource to minority-owned businesses to build their capacity for government contracts and enable access and connections to opportunities. We will also partner with federal agencies to conduct outreach to businesses, leverage our vast network, communicate programs and opportunities, provide learning solutions, technical assistance, and access to capital." [Statement, 12/2/21]

Goldman Sachs 10,000 Small Businesses Voices: "Following months of advocacy from the Goldman Sachs 10,000 Small Businesses Voices (10KSBV) community, the Biden-Harris administration today announced important changes in how federal agencies utilize and engage with small businesses in procurement processes. The changes will allow small businesses to more fairly compete with larger businesses for federal contracts, a nearly $700 billion industry. Goldman Sachs 10,000 Small Businesses Voices National Leadership Council Chair Jessica Johnson-Cope, a small business owner, and Joe Wall, national director of the Goldman Sachs 10,000 Small Businesses Voices program, released the following statements on behalf of more than 10,000 U.S. small business owners. Small businesses don't want a handout; we want a fair shot. Opportunities for procurement help small businesses generate economic growth in communities across the United States. This a big step toward leveling the playing field for small businesses to compete for and win federal contracts," Jessica Johnson-Cope said. "On behalf of the 10,000 Small Businesses Voices community, we thank the Biden administration for hearing our call to modernize this outdated process. Obscure and burdensome regulations all too often serve as barriers to small business success when they are competing with bigger businesses for federal contracts," Joe Wall said. "This is a nearly $700 billion industry, and reforms like this have a meaningful impact. Goldman Sachs 10,000 Small Businesses Voices is proud to have been a part of the advocacy efforts that led to this announcement and will continue to lead the way toward further reforms on behalf of small business owners."" [Statement, 12/2/21]

Small Business for America's Future: "We welcome President Biden's announcement to take the next step in the Administration's commitment to expand federal contracting with small and disadvantaged businesses by 50% by 2025 and a number of other key reforms. The plan to increase spending with business owners of color by $100 billion over five years follows up a promising goal set by the president in Tulsa, Okla., in June to ensure racial equity is at the center of his administration's policies. The proposal to use the federal government's purchasing power to grow its contracting with small and disadvantaged businesses presents a crucial opportunity for business owners of color dealing with the lingering economic impacts of the pandemic. This plan will help create opportunity for many small business owners seeking an equal shot at prosperity. Small business owners are the backbone of the nation's economy, driving economic growth and job creation--and entrepreneurship is a powerful vehicle to expand economic opportunity to all Americans. We urge the Administration to enact this proposal quickly and provide opportunities to business owners of color who have been disproportionately impacted by the pandemic." [Statement, 12/2/21]

Small Business Majority: "Despite their tremendous contributions to local communities, generating trillions of dollars in revenue to the national economy and employing millions of people, minority- and women-owned small businesses receive less than 10% of federal contracting dollars. We are thrilled to see the Administration utilize its enormous purchasing power and implement additional reforms that will promote equity for under-resourced small businesses. By releasing disaggregated data of federal contracting spending by race and ethnicity for the first time, we can better understand where the gaps lie and how we can ensure greater expansion and growth for businesses owned by people of color. What's more, asking federal agencies to increase their contract spending goals to 11% is a necessary step in helping more Americans reach their entrepreneurial dreams and promotes a level playing field for small, disadvantaged businesses." [Statement, 12/2/21]

American Sustainable Business Network: "The American Sustainable Business Network (ASBN) celebrates the White House executive order announced today whereby the federal government will increase its spending with underserved businesses to help more Americans realize their entrepreneurial dreams and reduce persistent wealth disparities. According to?new analysis?from the White House Council of Economic Advisers, based on data provided by the Small Business Administration (SBA), differences in business ownership account for 20 percent of the wealth gap between average white and Black households. Small, disadvantaged businesses (SDBs) is a category under federal law for which Black-owned, Latino-owned, and other minority-owned businesses are presumed to qualify. "Wealth disparity in the U.S. exists partly because of how the single largest spender in the marketplace, the federal government, allocates dollars for goods and services for its procurement. This increase in federal spending with underserved businesses will improve Americans' ability to fulfill their dreams of business ownership and narrow wealth disparities while helping to grow our economy," said David Levine, President of ASBN. "Desperately needed economic and public policy change brings economic equality into the realm of the possible and in turn puts more dollars in the economy bringing a benefit to all." "According to the latest US Census approximately 18.3% of all U.S. businesses are minority-owned and about 19.9% of all businesses are owned by women. With a $7 trillion dollar US budget filled with new infrastructure projects, an increase to a 15% government spend is great news for the growth of a fair and just economy. Investment in small businesses spurs the kind of innovation, growth and economic independence that is the dream for every entrepreneur. It also creates a ripple effect, building stronger communities, schools and neighborhoods. The return on investment will be exponential," said MaryAnne Howland, ASBN Board Chair, and Founder & CEO of Ibis Communications. "This executive order flexes the power of public-private partnerships to help address the deeply embedded inequities that permeate our economic system. Entrepreneurship is the heart of the American dream, and infusing capital into business that are often disadvantaged by existing capital structures is a necessary step towards investing in true, regenerative growth," said Seungah Jeong, ASBN Board Member, and President and CEO of MPOWERD. "Historically, diverse founders have lacked the support from traditional funding sources to scale and grow sustainable businesses that reach large market cap status. The support from this bill will go a long way towards equitable distribution of capital and support. I am thrilled to see this and hope we see even more growth," said Val Red-Horse Mohl, ASBN Board Member, and CEO & Founder of Red-Horse Financial Group." [Statement, 12/2/21]

Women Impacting Public Policy (WIPP): "Today, the Biden-Harris Administration followed up on its June 2021 announcement to increase spending towards small disadvantaged businesses. The Administration's commitment is a 50% increase of federal contracts going to small disadvantaged businesses by 2025, translating to $100 billion over 5 years. To learn more about the Administration's commitments, visit the factsheet here. Since its inception, Women Impacting Public Policy has advocated for greater equity and an even playing field in the federal procurement space, and this commitment will help achieve those goals. In addition, the Administration announced that the federal government would begin to disaggregate data for federal contracts by race/ethnicity of the business owner, which will provide us with a better understanding of how federal contracts are awarded. Accurate data has long presented challenges and barriers to communicating the needs of underserved businesses. "The past two years have been especially challenging for women owned small businesses, even more so for women of color. With this commitment, more women will have access to contracts and we'll have a better understanding of the pain points. WIPP commends the commitments made by the Biden-Harris Administration to allocate more federal dollars to small disadvantaged businesses." WIPP President & CEO Candace Waterman said of the announcement." [Statement, 12/2/21]

Reimagine Main Street: "We are encouraged by the White House's announcement today regarding next steps in the Administration's efforts to reform federal contracting to increase equity for business owners of color. In a May 2021 Reimagine Main Street national survey of small business owners, Black, Latino/Hispanic, AAPI, and Native/Indigenous business owners all reported Federal contracting as a top policy priority. This proposal will use the federal government's purchasing power to grow federal contracting with small and disadvantaged businesses, and in all, translates to an additional $100 billion over five years to help more Americans realize their entrepreneurial dreams. Additionally, a key pillar of Reimagine Main Street has been using the power of data to better understand solutions for business owners of color. Today's actions will, for the first time, release disaggregated data of federal contracting spending by race/ethnicity of business owners, building an important tool for how we shape solutions going forward. By taking steps to reform the federal contracting and procurement process, the Administration is working towards increasing racial equity, and taking an important step to build back Main Street from the COVID-19 pandemic." [Statement, 12/2/21]