Republicans advocate Trump's domestic policy plans in Iowa, though some business owners remain skeptic
The federal government's support for small businesses through procurement is marked by several significant developments and uncertainties under the Trump administration.
Set-Aside Awards
In recent years, set-aside awards have reached a high percentage of contracting dollars awarded to small businesses. However, there is uncertainty about the future of key non-statutory provisions like the "Rule of Two," which could be impacted by changes in federal acquisition policies.
Regulatory Changes and Uncertainty
The administration's deregulatory agenda, which aims to favor US-based investment, has introduced uncertainty for small businesses navigating changes in trade, energy, and technology priorities.
Impact of Federal Workforce and Cost-Cutting Efforts
OFCCP Enforcement Reduction
The Trump administration has significantly reduced the enforcement capabilities of the Office of Federal Contract Compliance Programs (OFCCP), making it easier for federal contractors to avoid equal employment opportunity laws. This could affect small businesses that rely on fair hiring practices.
Healthcare Uncertainty
Small businesses face challenges due to healthcare cost increases and uncertainty about future coverage. The administration's actions and budget laws have led to higher healthcare costs, making it difficult for small businesses to compete with larger companies that can offer better healthcare benefits.
Contract Terminations
The administration has been actively reviewing and terminating contracts not aligned with its management agenda, which may impact small businesses that rely on these contracts for stability.
Addressing Small Business Concerns
Iowa Republicans, including Sen. Joni Ernst, are promoting President Donald Trump's agenda, emphasizing its benefits for small businesses. Iowa GOP Rep. Randy Feenstra made a case for Trump's tax and spending cuts law to a crowd of small business leaders and entrepreneurs.
Majority Leader Steve Scalise was in Iowa this week making public appearances with Nunn and Miller-Meeks and fundraising on their behalf. Scalise and Nunn argued that the elimination of renewable energy tax credits in Trump's legislation does not mean they don't support renewable energy, but was designed to create an even playing field and wean the US off of foreign energy.
Ernst is promoting bipartisan legislation that would increase the maximum loan limit for small businesses in an aim to boost domestic manufacturing. Ernst believes that downsizing the federal government will help small businesses grow.
However, some small business leaders at Ernst's event expressed concerns about the administration's rollback of environmental regulations and the elimination of clean energy tax credits. Jordi Quevedo-Valls, who co-founded a startup marketplace, said the EPA's rollback of environmental protections is concerning and has a real impact on how businesses move forward.
Victor Santana, who helps small businesses secure federal contracts, said he's gotten few answers about replacements or a path forward after the slashing of the federal workforce. Tanner Heikens, who works at an Iowa-based food manufacturing company, expressed concern about the administration's focus on creating new businesses over supporting existing ones in the labor force.
Laura Pager, a small business contractor, lost approximately $6 million in work this year due to contract cancellations by the Department of Government Efficiency. The Small Business Administration (SBA) does not have a region-based business opportunity specialist to help small businesses navigate the federal government, as a previous one retired and no replacement has been appointed.
The SBA approved 46,430 504 and 7(a) loans for over $24 billion and 25,032 disaster loans for $3.8 billion between January 20, 2025, and the present. This equates to nearly 2,500 loans per week.
In conclusion, while the federal government continues to support small businesses through procurement, the landscape is becoming increasingly complex due to regulatory changes, workforce adjustments, and cost-cutting efforts. These factors introduce uncertainty and challenges for small business owners and entrepreneurs seeking to navigate the federal contracting environment.
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