SBA Updates Agency Small Business Contracting Goals

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The U.S. Small Business Administration (SBA) recently updated agency contracting goals for fiscal year 2025. Minimum small business contracting goals are in statute, including the overall 23% small business prime contracting goal, but the federal government can establish more significant requirements.

Each year, the SBA publishes specific small business contracting goals by type for the 24 agencies subject to the Chief Financial Officers Act. Within the overall 23% small business prime contracting goal, the SBA can establish greater requirements for small disadvantaged businesses (SDBs), women-owned small businesses (WOSBs), service-disabled veteran-owned small businesses (SDVOSBs), and those participating in the HUBZone program.

The SBA works with federal agencies to ensure compliance, track performance, and adjust goals as needed. This goal benefits small businesses and protects the nation’s supply chain by broadening access to more sources.

The most recent SBA update slightly adjusts some agency-wide prime contract goals and retains the same percentages for WOSBs, SDVOSBs, and HUBZone small businesses. However, it reduced prime contract goals for small disadvantaged firms to 5%, which had increased during the previous administration.

An explanation of the SBA goaling program and each year’s goals can be found at https://www.sba.gov/document/support-agency-contracting-goals.