In June 2021, the Biden administration announced its plans to increase the percentage of Small Business contracting by 50% over the next 5 years. To meet this goal, the administration has proposed $30B in new SBA initiatives that would reduce barriers to small business ownership and success. The new SBA initiatives will focus on increasing access to capital with new direct loans to small businesses, new loan products for clean energy businesses and manufacturers, and will establish a new Small Business Investment Corporation that will make early-stage equity investments in small businesses with priority for SDBs.
Further, the SBA will offer technical assistance programs to 8(a) firms, reinforce the American subcontracting network to create pathways to prime contracting, encourage Fortune 500 firms to diversify their procurements, and bring more socially and economically disadvantaged businesses into federal research and development programs. These investments would include an innovative new $1 billion grant program through the Minority Business Development Agency meant to help minority-owned manufacturers access private capital (More details on the American Jobs Plan here: https://www.jdsupra.com/legalnews/biden-announces-50-percent-increase-in-1989148/).
The Legislative Update: According to the National Law Review, the House of Representatives approved a $3.5 trillion budget resolution in late August. This triggered a reconciliation process that House Democrats are using to include components of President Biden’s American Jobs Plan. They are working to have a legislative package completed by the end of September. Then the bill will still need to be approved by both the House and the Senate. (Beltway Buzz, August 27, 2021: America Jobs Plan and US Budget https://www.natlawreview.com/article/beltway-buzz-august-27-2021-america-jobs-plan-and-us-budget). It is still to be determined which aspects of the American Jobs Plan will be included in the final legislation. Now is a good time to talk to your congress person to request his/her support for the American Jobs Plan initiatives.