SBA Doubles Federal Contracting Goal to Expand Opportunity for Veteran-Owned Small Businesses

WASHINGTON - Today, on the first day of National Veterans Small Business Week, the U.S. Small Business Administration (SBA) announced new Fiscal Year (FY) 2027 small business contracting goals to emphasize federal contracting with both veteran-owned and service-disabled veteran-owned small businesses (SDVOSBs). Under the historic guidance, the agency-level goal for veteran prime contracting and subcontracting doubles from 5% to 10%, advancing President Trump's commitment to strengthen America's industrial base, invest in small businesses, and support those who served our nation.

"The Trump SBA is proud to establish historic federal contracting goals - doubling the 5% objective to 10% - for veteran-owned and service-disabled veteran-owned small businesses, who are among the most competent and critical contractors," said SBA Administrator Kelly Loeffler. "Veteran entrepreneurs deliver unmatched products and services that bolster our Main Streets and our military readiness. Traveling the country, I've had the honor of meeting with many veteran-led businesses. In the defense industry, small businesses make up 70% of the industrial base, and they underpin the Arsenal of Freedom. We are proud to offer our nation's heroes new opportunities to grow their small businesses and create more jobs - and we are grateful for their service to our nation as essential suppliers and innovators."

The new contracting target will encourage more federal investment in America's veteran entrepreneurs - expanding opportunities for them to bring their skills, leadership, and productive power to federal contracting where they often serve as key suppliers to the defense industrial base. The increased goal comes after a strong year of federal contracting for veterans in FY25, when the Trump Administration exceeded the government-wide 5% SDVOSB contracting goal with $32.5 billion in federal prime contracts awarded to SDVOSBs.

The announcement also builds on SBA's efforts to prioritize contracting certifications for SDVOSBs. Last year, the agency cleared a Biden-era backlog of more than 2,700 Veteran Small Business Certification (VetCert) applications that had accumulated after the prior Administration diverted resources away from VetCert to increase certification approvals for the 8(a) Program. In FY26, the SBA subsequently approved over 18,000 contracting certifications for veteran-owned small businesses.

SBA has set the following prime contracting and subcontracting goals for federal agencies in FY27:

The Small Business Act requires the federal government to establish annual contracting goals that provide the maximum practicable opportunity for small businesses, including service-disabled veteran-owned, women-owned, small disadvantaged, and HUBZone firms. SBA works with agencies to set prime contracting and subcontracting goals that collectively support government-wide requirements, including the statutory target of awarding at least 23% of federal prime contracting dollars to small businesses - a goal that the federal government has exceeded for eleven consecutive years. SBA measures progress through its annual Small Business Procurement Scorecard, promoting transparency and holding agencies accountable for expanding small business participation in the federal marketplace.

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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

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