Small businesses received about 27% of federal contracting dollars in 2022. Of these contracts, 5% went to minority-owned or disadvantaged businesses.

Five percent of 27% is small potatoes, right? 

Not necessarily. Small business contracts were valued at $163 billion.  Five percent of that number is $8.1 billion and the set-asides that produce these figures are mandated by law. 

But wait, it gets better. For minority-owned and disadvantaged businesses, some federal contracts require a so-called 8(a) certification, and in any given year there are just 8,000 certified contractors nationwide. By becoming an 8(a) contractor you reduce your competition from hundreds of thousands to just a few thousand.  And since contractors specialize, and are geographically focused, in certain instances, there may be little to no competition for contracts worth millions.

The minority report is looking very profitable indeed.  But in order to capture these opportunities, you will need both surety bonding and access to capital to undertake these projects.

That is where CapStream can help you reach the next level. Our combination of financial and surety products can increase your bonding capacity, allowing you to undertake more and larger projects. 

Fill out our short questionnaire and set up a time to connect (Click Here)

Or contact us at (646)442-1040 or team@capstream.app and let’s discuss what we can do for you. 

Sources

2022 Contracting Report
https://www.govexec.com/management/2023/07/small-businesses-federal-contracting-dollars-all-time-high/388618

Number of 8(a) Certified Contractors
https://www.ez8a.com/8a-certification.aspx