The Small Business Administration (SBA) has announced significant adjustments to its small business contracting goals for 2025, reflecting an evolving landscape in federal procurement. According to the SBA, there will be a notable reduction in the small disadvantaged business (SDB) goal from 15% to 8% of total federal contracting dollars, a decision influenced largely by President Biden’s repeal of Executive Order 14091, which aimed to bolster subcontracting opportunities for small businesses. SBA Administrator Isabella Casillas Guzman stated, “While our commitment to supporting small businesses is unwavering, we must also assess and adapt our goals in accordance with current economic conditions and program effectiveness.” This strategic shift marks a departure from previous administrations’ approaches that focused on expanding opportunities for small businesses and could lead to concerns among advocates for small and disadvantaged enterprises. The SBA’s new targets will also include setting a 10% goal for women-owned small businesses (WOSBs) and a 5% goal for services disabled veteran-owned small businesses (SDVOSBs). Analysts warn that such reductions in targets could hinder the growth of small businesses that have historically benefitted from federal contracts. The new goals come amidst a backdrop of ongoing discussions about the need for effective federal policies that address the needs of small businesses while ensuring equitable access to contracts. The SBA has not yet clarified the rationale behind the SDB goal adjustment, but further information is anticipated in upcoming briefings. This change marks an important moment in the federal contracting landscape, and stakeholders are urged to stay engaged as the SBA refines its policies and objectives.
SBA Adjusts Small Business Contracting Goals for 2025 Amid Policy Changes
