EXECUTIVE鈥橲 DESK
Rivera-Wiest: The SBA is moving the goalpost on federal certifications for small businesses
As the federal government nears the end of its fiscal year, it is important to note that the Small Business Administration is moving the small-business contracting goalpost for agencies.
This is important because in 2025, the federal government committed $793 billion to contracts, and that could rise to $830 billion in 2026.
One of the major changes is a focus on contracting with veterans, both service-disabled (SDV) and nonservice-disabled veteran-owned, SBA-certified companies.
Additionally, federal agencies are actively pivoting their small-business procurement strategies to include HUBZone and woman-owned certified companies. New Mexico has a significant number of HUBZone designations driven by its vast rural expanses.
The SBA has heavily audited and restructured the 8(a) program, which has resulted in burdensome wait times for certification. This has resulted in a pivot of procurement strategy. Federal agencies regularly miss their statutory spend goals for HUBZone (3%) and woman-owned small businesses (5%), making them eager to award contracts to businesses holding these certifications to fix their metrics.
The 8(a) program is becoming leaner and highly scrutinized due to an agency-wide crackdown on fraud that resulted in an aggressive audit of existing 8(a) contractors. Contrary to rumor, the 8(a) program is codified in federal statutory law and cannot be abolished without an act of Congress.
For firms with transparent financial tracking and impeccable compliance, the program remains a highly valuable tool for federal contracting. However, to align your company with current SBA rules, you must transition to an evidence-based, highly documented operational framework. This holds true for all of the varied certifications.
Veteran-owned small businesses are the clear winners under the current SBA adjustments. Agencies are leaning heavily into veteran-owned and SDV-owned set-aside contracts because the program has been stable and does not have a backlog of pending certifications.
While the different certifications offer differing advantages, some of the most common benefits include:
鈥� Access to contracts that are set aside exclusively for certified small businesses.
鈥� Increased visibility with contracting officers and government buyers.
鈥� Greater opportunity to compete for sole-source and limited competition awards.
When used strategically, these certifications can be powerful tools to grow your company and expand your market footprint.
Roxanne Rivera-Wiest is the president and executive director of GovBizTech Consultants Inc., a consulting and economic development firm based in Albuquerque. Executive鈥檚 Desk is a guest column providing advice, commentary or information about resources available to the business community in New Mexico. To submit a column for consideration, email mnarvaiz@abqjournal.com.
