The Small Business Administration and the U.S. Department of Transportation have announced new memorandums of understanding as part of an effort to include more small and underserved businesses in contracts awarded under the Infrastructure Investment and Jobs Act, Inflation Reduction Act and other laws and programs.
SBA officials said the Administration can use its Small Business Investment Companies network to help federal contractors as well as manufacturers and technology companies previously selected.
The first MOU announced will help small disadvantaged businesses and Disadvantaged Business Enterprises working in transportation to obtain bonds or increase their bonding capacities to bid on more projects funded by DOT.
The second contains commitments by both SBA and DOT to improve access to capital by connecting DOT businesses and the SBIC network.
A third MOU between DOT and the Commerce Department’s Minority Business Development Agency will seek to use data sharing to better develop and engage minority businesses in transportation and supply chains.
Along with these efforts, SBA is working to improve management and tracking in its SBIC portfolio to help focus investment in critical industries and looking at opportunities to simplify how small businesses engage in opportunities with state and federal governments.
To improve engagement, DOT is working on a plan to hold in-person events and matchmaking sessions and to improve its directories to better match large prime contractors with smaller service providers.
DOT has targeted 21% of its contracting in 2022 to go to small and disadvantaged businesses.
Along with the project funding and connection efforts, the Inflation Reduction Act features a variety to incentivize small businesses. (Source)