Potential Increase in Small Business Goals

Good news for HUBZones and small businesses, broadly! The House of Representatives has passed the 2022 National Defense Authorization Act, which contains an amendment that would effectively expand the federal government’s small business prime contracting goal from 23% to 25%. This increase is thanks to Representative Kweisi Mfume (MD), who proposed an amendment, which would not only increase the prime contracting goals for small businesses, but would also increase the goals for for service-disabled veteran-owned small businesses, HUBZone small businesses, small disadvantaged businesses, and women-owned small businesses.

Mfume’s House-passed amendment calls for the following increases:

• Small Business from 23% to 25%

• SDB from 10% to 15%

• HUBZone from 3% to 4%

• SDVOSB from 3% to 4%

• WOSB from 5% to 7%

The final 2022 NDAA now lies in the Senate, where its fate will ultimately be decided. If the bill becomes law, the new small business, HUBZone, and SDVOSB goals will kick in immediately, while the new WOSB goal will be phased in over three years, and the new SDB goals in four. 

This is a developing situation, and one that we at GrowthLab will be monitoring closely. Please reach out to your Senator to encourage them to keep this amendment in there. Have questions regarding this or winning more business for your HUBZone? We’re here to help.