The federal government spends a significant amount of money on small businesses, but the exact figure can vary each year. These expenditures are aimed at promoting and supporting small business growth, innovation, and economic development.
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The federal government of the United States allocates a significant amount of funding towards supporting small businesses, although the specific figures can vary from year to year. These funds are aimed at fostering the growth, innovation, and economic development of small enterprises across the nation.
According to a famous quote by former United States President, Barack Obama, “Small businesses are the backbone of our economy and the cornerstones of our communities. They create two-thirds of net new jobs and drive U.S. innovation and competitiveness.” This resonates with the government’s emphasis on providing resources and financial support to small businesses.
Here are some interesting facts related to the federal government’s spending on small businesses:
Small Business Administration (SBA) Budget: The U.S. Small Business Administration plays a crucial role in supporting small businesses and entrepreneurs. The SBA’s budget, which includes various financial assistance programs, grants, and loans, grew to $889 million in fiscal year 2020.
Federal Contracts: The government actively engages with small businesses by awarding them federal contracts. In order to promote small business participation, the government aims to award at least 23% of prime contract dollars to small businesses annually.
Funding for Research and Development: The federal government encourages innovation by providing substantial funding for research and development (R&D) activities conducted by small businesses. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs allocate a portion of agencies’ extramural budgets to support small businesses in engaging in federal R&D initiatives.
Disaster Assistance: In the event of natural disasters, the federal government provides disaster assistance to small businesses affected by such events. This assistance includes low-interest loans, grants, and counseling services to help small businesses recover and rebuild.
To provide a comprehensive overview, here is a table highlighting the approximate federal government spending on small businesses in recent years:
|Year||Estimated Spending on Small Businesses (in billions)|
*Please note that the figures for 2021 are estimated and subject to change.
In conclusion, the federal government shows its commitment to small business growth and economic development by consistently allocating a significant portion of its budget to support small businesses through various initiatives, contracts, and programs. As Richard Nixon once said, “Small businesses are vital to our nation’s economy… They stimulate economic activity by providing employment opportunities and by revitalizing existing communities.”
See a video about the subject.
This YouTube video discusses different ways to obtain small business grants in 2022. The speaker emphasizes the importance of taking advantage of grants, even if a business doesn’t immediately need funds, as it can prevent competitors from surging ahead. The video suggests starting the search for grants at the local level, such as city or county government programs, and reaching out to local small business development centers, the Small Business Administration (SBA), or the local economic development authority. It also advises contacting elected officials who have access to government funds. The video highlights federal grants and offers tips on applying for them, emphasizing the importance of being incorporated, having a federal identification number, and maintaining up-to-date financial records. The video concludes by encouraging viewers to like and subscribe to the channel for more business growth information.
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More than $154 billion in federal contracts went to small businesses in fiscal 2021 — about 27% of all government contract spending that year.
The federal government spent about $500 billion in contracting funds in FY2019. The SBA’s scorecard highlights that more than one out of every four dollars spent was contracted with a small business – or 26.5%.
In FY2019, the government spent about $500 billion in contracting funds. Below is the comparison between the actuals and the goals. According to the SBA’s scorecard, small businesses were responsible for more than one out of every four dollars spent, or 26 percent.