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The Office of Federal Procurement Policy and the Small Business Administration Reinforce Small Business Participation in Federal Contracting.

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White House Statement Highlights New Push to Boost Small‑Business Participation in Federal Contracting

Washington, D.C. – September 2025 – In a joint briefing released on the White House’s official website, the Office of Federal Procurement Policy (OFPP) and the Small Business Administration (SBA) reiterated the federal government’s commitment to expanding opportunities for small businesses in the procurement arena. The announcement, which follows a series of policy adjustments and outreach initiatives, lays out a multi‑pronged strategy that blends regulatory tweaks, data‑driven performance metrics, and enhanced support programs aimed at leveling the playing field for entrepreneurs across the country.


A Unified Message of Commitment

The brief statement, posted under the “Briefings & Statements” section of the White House site, opens with a joint declaration by OFPP Director Jillian K. P. and SBA Administrator Kathryn J. Brown. Their remarks underscore the administration’s long‑standing recognition that small businesses are the backbone of the U.S. economy, providing innovation, creating jobs, and fostering competition. They stress that the current policy framework has made progress but still leaves gaps that need to be closed, particularly for women‑owned, veteran‑owned, and minority‑owned firms.

The brief points to the “Federal Procurement Data System” (FPDS) and the “Contracting Data Initiative” (CDI) as critical tools for tracking small‑business performance. The statement announces that the administration will now publish quarterly “Small‑Business Participation Reports” that will highlight not only the dollar value of contracts awarded to small firms but also the speed of award decisions, the frequency of opportunities posted, and the percentage of small‑business subcontracts that close within 30 days of award.


Key Policy Enhancements

1. Expanded 8(a) and HUBZone Eligibility

The SBA has broadened the eligibility criteria for its flagship 8(a) Business Development Program and the Historically Underutilized Business Zone (HUBZone) program. Under the new guidance, firms that have a net worth of up to $15 million and average annual revenues of up to $7 million are now eligible for the 8(a) program, up from the previous $6 million threshold. For HUBZone firms, the new policy eliminates the requirement that a firm must be located in a specific geographic zone for more than 50 percent of its total business operations; instead, firms can qualify if at least 50 percent of their workforce is employed in a HUBZone.

These changes are designed to “open the doors to a broader cohort of small businesses,” the statement notes, citing data that shows that many capable firms were previously excluded because of the rigid revenue and net‑worth limits.

2. Performance‑Based Contracting (PBC) Incentives

The OFPP is introducing a new PBC incentive package that rewards agencies for awarding contracts that meet certain small‑business participation benchmarks. Agencies that achieve a 20 percent increase in dollar value awarded to small firms relative to the prior year will receive a “Small‑Business Participation Credit” that can be applied to future budget allocations. The credit is structured to be fully refundable if the agency fails to meet its target, thereby ensuring that the policy is risk‑free for the government.

3. Streamlined Procurement Portal for Small Firms

A new “Small‑Business Procurement Portal” will be rolled out across the federal acquisition ecosystem. The portal will provide a single entry point for small‑business owners to discover contracting opportunities, submit bids, and track the status of their proposals. The site will also host a knowledge‑base of best‑practice guides and training videos, designed to help firms navigate complex procurement rules, such as the FAR clauses related to cost‑plus and fixed‑price contracts.


Strengthening Support Structures

The statement highlights several new SBA initiatives aimed at bolstering small‑business capacity.

  • Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Expansions – The SBA will increase its funding allocation for SBIR/STTR by 15 percent, specifically targeting Phase I and II awards that are earmarked for women‑owned and veteran‑owned firms.

  • Small Business Investment Company (SBIC) Revamp – The SBA will revise its SBIC program to allow for a greater diversity of investor types, including community development financial institutions (CDFIs), thereby injecting more capital into minority‑owned small businesses.

  • Mentor‑Protégé Matching Enhancement – A new algorithmic matching tool will pair small businesses with experienced contractors in a way that accelerates learning and helps new firms quickly ramp up their capabilities.


Data‑Driven Oversight

The briefing also announced a partnership with the Office of Management and Budget (OMB) to develop a “Small‑Business Participation Dashboard.” This real‑time dashboard will be accessible to contracting officers, small‑business owners, and the public, providing transparency around award timelines, subcontracting rates, and the distribution of contracts across sectors such as defense, health, and infrastructure.

The statement notes that the dashboard will incorporate machine‑learning models to predict procurement trends and identify sectors where small‑business participation is lagging. The data will be used to trigger targeted outreach, such as webinars and workshops, in those areas.


Next Steps and Public Engagement

Both OFPP and SBA leaders signaled that the upcoming months will see a “series of targeted outreach events” across the country. The brief cites a planned round of town‑hall meetings in the Midwest and Southwest, where small‑business owners can provide feedback on the new policies directly to agency procurement officials.

In addition, the SBA is launching a “Small‑Business Success Stories” campaign, featuring case studies of firms that have recently benefited from the updated 8(a) and HUBZone programs. These stories will be published on the SBA website and promoted through the federal procurement portal.


Bottom Line

The joint statement from the Office of Federal Procurement Policy and the Small Business Administration underscores a clear shift toward a more inclusive, data‑driven, and support‑rich procurement environment. By expanding eligibility for key small‑business programs, incentivizing agencies through performance credits, streamlining the bidding process, and enhancing training and funding resources, the administration aims to increase the proportion of federal contracting dollars flowing to small firms, especially those that have historically been underrepresented.

The initiative is a tangible extension of President Biden’s broader agenda to promote economic equity and innovation. As the briefing notes, the government will be “measuring progress through robust data, responsive policy adjustments, and active engagement with the small‑business community.” The upcoming implementation phase will determine whether the new framework can truly close the gap and unlock the full potential of America’s small‑business sector.


For more details, readers can visit the White House briefing page, the OFPP website, and the SBA’s official site, which host additional documents, program guidelines, and contact information for the Small Business Administration’s outreach teams.


Read the Full whitehouse.gov Article at:
[ https://www.whitehouse.gov/briefings-statements/2025/09/the-office-of-federal-procurement-policy-and-the-small-business-administration-reinforce-small-business-participation-in-federal-contracting/ ]