Business

White House asks government to buy more from disadvantaged small businesses

FILE PHOTO: Outbreak of coronavirus disease (COVID-19), in New York City
FILE PHOTO: People walk past a closed business following an outbreak of the coronavirus disease (COVID-19) in the Manhattan borough of New York City, New York, U.S., August 17, 2020. REUTERS/ Carlo Allegri // File Photo

December 2, 2021

WASHINGTON (Reuters) – The White House on Thursday announced a plan to require federal agencies to direct at least 11% of contract dollars spent on struggling small businesses next year, up from an average of 9. .8% over the past five years.

The small increase, which would far exceed the 5 percent required by law, is part of an effort to harness the federal government’s massive purchasing power to boost equity, the White House said.

“President Biden is committed to using every tool available to him and helping level the playing field for small and underserved businesses… as a way to close the racial wealth gap,” an official said. Senior administration officials told reporters during a press conference ahead of the announcement.

He said the federal government is the largest buyer of goods and services in the world at $600 billion a year.

He added: “The federal government can be a powerful driver of equity and wealth building in underserved communities, noting that the overall target is 15% by 2025. .

The White House said disadvantaged small businesses are a category under federal law under which businesses owned by blacks, Hispanics and other minority-owned businesses “are considered is eligible”.

The move comes after a recent report found that the number of new small businesses entering federal procurement fell 60 percent over the past decade, the White House said.

(Reporting by Jeff Mason and Alexandra Alper; Editing by Leslie Adler)

https://www.oann.com/white-house-asks-government-to-buy-more-from-small-disadvantaged-businesses/?utm_source=rss&utm_medium=rss&utm_campaign=white-house-asks-government-to-buy-more-from-small-disadvantaged-businesses White House asks government to buy more from disadvantaged small businesses

Bobby Allyn

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