Small businesses are struggling to get their slice of the $787 billion economic stimulus package, lawmakers and entrepreneurs said during a Senate hearing on Thursday.
Ninety-four days after President Obama signed the 2009 American Reinvestment and Recovery Act into law, federal agencies have awarded small businesses only 10 percent of stimulus contracts, according to data released during the Small Business and Entrepreneurship Committee hearing. Those contracts are worth a total of $389 million.
"This is simply unacceptable," said Sen. Olympia Snowe, R-Maine, the committee's ranking member. "Small businesses deserve their fair share."
Snowe said small businesses, many of which have been particularly hard hit by the economic recession, should receive at least 23 percent of federal stimulus contracts. That would match the government's overall small business contracting goal.
"For this trend to change, small businesses need access to capital and increased sales volume," said Sen. Mary Landrieu, D-La., chairwoman of the committee.
On Wednesday, Landrieu and Snowe sent letters to the nation's governors urging them to use a portion of their Recovery Act funds for small business contracting.
Small Business Administration leaders told lawmakers to be patient, and noted signs of progress. As of April 15, small businesses had won 1.8 percent of all stimulus awards, according to SBA data. By May 5, that figure had increased to 6.3 percent, and by Thursday, it had reached 10.3 percent.
"We have seen a steady increase [in contracting], but the absolute value is not where we want it to be," said Joe Jordan, SBA's associate administrator of government contracting and business development.
SBA has partnered with the General Services Administration to disseminate information about small business stimulus contracting opportunities, Jordan said. And, earlier this week, SBA launched a new Web site where small firms can find Recovery Act subcontracting opportunities.
We encourage each and every one of your to take a look at that site. Look at both what is online, and what is not. Yes, look at the construction and techological projects. Then also look at the geographical areas and determine what support services these projects will need.
The projects are there. The money is there. Go for it. And if you need financing, get that business plan out of cold storage and put some life into it. If ever there was a time when a strong business plan will serve you well, this is IT.
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