| Photo by Adam Winger on Unsplash
HARRISBURG, PA – Governor Josh Shapiro opens doors of opportunities for small and small-diverse businesses to compete for state contracts and has made the state procurement process more accessible through Executive Order 2023-18.
According to the Shapiro administration, $20 million of state funding in the 2023-24 budget has been secured to help small minority-, women- and veteran-owned businesses in the state to grow, create jobs, and build generational wealth in communities too often left behind.
In his first budget address, he said he wanted every Pennsylvanian to know that the Commonwealth values what they bring to the table. “We will take an active role in breaking down the barriers to progress and partnering with you,” he said, and “we’ll provide long-overdue funding for women and minority-owned businesses across this Commonwealth, to support their growth and open new doors of opportunity.”
The Shapiro administration reported that its work to open doors of opportunity involved:
Opening Up New Doors to New Opportunities for Small and Small Diverse Businesses by Improving State Procurement Practices
- In September, Governor Shapiro signed Executive Order 2023-18 to increase opportunities for small and small diverse businesses to compete for state contracts, make the Commonwealth procurement process more accessible, and take actionable steps to help small businesses and small, diverse businesses grow, succeed, and create good-paying jobs.
- -The Executive Order directs the Department of General Services (DGS), under the leadership of Secretary Reggie McNeil, to lead and coordinate efforts with agencies to increase their total operational spending and participation in the Commonwealth’s Small Business Reserve (SBR) program, foster more competitive procurement, and increase the amount of money that goes into the hands of small and small diverse businesses.
- Due to the Executive Order, DGS Secretary McNeil is updating the Commonwealth’s definition of a small business by raising the revenue limit from $38.5 million to $47 million, ensuring more small businesses can qualify.
- Established by the Executive Order, the Pennsylvania Advisory Council for Inclusive Procurement (PACIP) – chaired by Lieutenant Governor Davis – will also work to advise Commonwealth agencies on making state contracting opportunities more inclusive.
Securing State Funding for the Historically Disadvantaged Business Program for the First Time in Commonwealth History
- While campaigning, Governor Shapiro and Lieutenant Governor Davis promised to put sustainable state funding into the Historically Disadvantaged Business Program to support women and minority-owned businesses across the Commonwealth.
- For the first time in the 2023-24 budget, Governor Shapiro and Lieutenant Governor Davis secured $20 million in state funding for the Historically Disadvantaged Business Program – making good on their promise to deliver real results for historically disadvantaged businesses.
- On average, disadvantaged businesses have less access to capital, are three times more likely to be denied loans, are more likely to pay a higher interest rate, and are more likely to receive lower loan amounts than non-minority-owned firms – and this historic budget funding will open up the doors of opportunity for small minority-, women-, and veteran-owned businesses.
Making Government Work for All: Helping Small Businesses Receive Payment Faster and Reducing the Small Business Certification Time
- Under the Shapiro Administration, DGS made significant strides to support small and small diverse businesses by:
- Reducing the time it takes to certify a small business by 33 percent. Before the Shapiro Administration, businesses took 15 days to become certified, but with updated improvements, DGS reduced the certification time to 10 days.
- Implementing a prompt pay policy that requires prime contractors to pay small and small-diverse business and veteran-owned business subcontractors faster for non-construction goods and services provided to the Commonwealth under state contracts within ten days of receipt of payment from the Commonwealth.
- Bringing small, small-diverse, and veteran-owned businesses together to understand better Commonwealth procurement opportunities, available resources to capital, and how the Shapiro-Davis Administration is working to make state contracting easier for them at DGS’ first-ever Small Business Empowerment Summit.
–With Jay Domingo/PDM
