Small Business Administration Publishes Complete Minority Contracting Data in Response to Rep. Lee, Tri-Caucus Letter
WASHINGTON, DC – Today, Congresswoman Barbara Lee (CA-12) and Tri-Caucus Leaders Reps. Steven Horsford (NV-4), Judy Chu (CA-28), and Nanette Barragán (CA-44) applauded the Small Business Administration for granting the lawmakers’ request for the agency to publish complete data on federal small and disadvantaged businesses disaggregated by race and ethnicity.
“This is welcome news. I thank Administrator Guzman and staff at the SBA for their work to publish this important data, which will help lawmakers and policymakers to better understand the inequities that exist in federal contracting so that we can work towards greater equality,” said Congresswoman Lee. “Federal contracting dollars can have a huge impact on minority-owned small businesses and communities of color, and it’s critical that Congress holds the Biden Administration accountable for their commitment to award at least 15% of those contracts to Small Disadvantaged Businesses by FY25.”
“The CBC applauds Administrator Isabel Guzman and the Small Business Administration for delivering on their commitment to publish complete data on federal contracts for small and disadvantaged businesses disaggregated by race and ethnicity,” said Congressional Black Caucus Chairman Steven Horsford. “Black and minority-owned businesses have historically struggled to win federal contracts and often receive a disproportionate amount of funds of the US business sector, which has cut off access to billions for Black small businesses. This data will help to reduce this disparity.”
“The release of this data by the SBA is a welcome step forward in shining a light on disparities in federal contracting awards and ensuring communities of color and disadvantaged communities have equitable access to federal funds,” said Congressional Asian Pacific American Caucus Chair Judy Chu. “CAPAC looks forward to partnering with the SBA to further increase the disaggregation of this data, including for small businesses owned by Native Hawaiians and Pacific Islanders and specific Asian American racial and ethnic groups.”
“CHC members are thankful to SBA Administrator Isabel Guzman and her team for their work in publishing complete and accurate data on federal contracts awarded to small and disadvantaged businesses,” said Congressional Hispanic Caucus Chair Nanette Barragán.“Immigrants, including Latinos, start small businesses at higher rates than U.S.-born citizens, which helps fuel our nation’s economic growth. Historically, Latino small businesses have struggled to attain federal contracts. The CHC has long worked to level the playing field for minority business owners. This new data will aid our Caucus as we continue our work.”
In April, the lawmakers led a letter with over 40 House Democrats to SBA Administrator Guzman urging the agency to publish a complete version of federal contracting spending data broken down by race and ethnicity. The administration published this kind of data for the first time in December 2021, but the data released in January 2024 for FY2021 and FY2022 has thus far been limited to the top five agencies.
In their letter, the lawmakers, who lead the Congressional Black Caucus, Congressional Hispanic Caucus, and Congressional Asian Pacific American Caucus, underscored the economic impact federal contracting dollars can have on minority-owned small businesses and communities of color.
Disaggregated data on race and ethnicity would show how these federal contracting awards for small businesses are being divided across racial and ethnic categories — Black and African American, Asian American, Native Hawaiian and Pacific Islander, Hispanic and Latino, Native American, and other minority-owned small businesses – to monitor equity and progress at a time when transparency is key to understanding the disparities faced by minority-owned small businesses.