A little over ten years ago, there was a noticeable trend in government contracting where small businesses were exiting the federal marketplace rapidly, and there were no new companies stepping in to fill their place. Consequently, the number of small business vendors in the government’s ecosystem significantly decreased.

This decline in the industrial base sounded alarms across party lines and led the Department of Defense to identify it as a national security risk.

It is concerning to witness inaccurate criticisms directed at small government contractors and the Small Business Administration’s efforts to recruit and retain them in the federal marketplace. Baseless attacks are being used under the guise of opposing initiatives for diversity, equity, and inclusion or wasteful spending, posing a threat to small business contracting programs and weakening the vital role that small firms play in our economy and industrial base.

Establishing and expanding a business is a daunting task, with additional layers of complexity for small companies competing for government contracts without the resources or scope of larger corporations.

To create a level playing field, Congress, the Small Business Administration, and federal agencies have long collaborated to ensure that small firms receive fair procurement opportunities. The primary method employed is specifying goals for federal agencies to award a portion of their contracts to small businesses annually.

These programs are not financial handouts, subsidies, or preferential treatment. They do not lead to additional government spending. Rather, the funds allocated to achieving these goals go towards paying small businesses for the products or services they have supplied to their customers.

Critics who brand these programs as wasteful overlook the fundamental nature of government procurement. If a small business fails to secure a contract, a larger company will. This does not eliminate the contract or save the government money. The only distinction is whether taxpayer funds support small businesses or channel more finances towards large corporations.

Opponents of small business programs have falsely asserted that these initiatives are race-based, which is inaccurate. While the SBA’s 8(a) program historically provided expedited eligibility to certain racial groups, it was never racially exclusive, and this streamlined eligibility was removed in 2023. Presently, all applicants, regardless of race, must individually verify their social and economic disadvantages.

Labeling small business programs as race-based is a purposeful misrepresentation aimed at generating controversy. It also insinuates that small business owners benefiting from these programs are inadequate, which is both incorrect and offensive.

When discussing wasteful government spending, individuals typically refer to instances where the government paid too much, bought unnecessary items, or did not receive the promised goods or services. However, some now argue that a contract is wasteful solely because a disadvantaged small business acquired it. This is not about financial prudence but rather discrimination.

It is puzzling to equate a firm’s participation in these programs with being unqualified or incompetent. Having served on the House Small Business Committee for many years, I have never heard a small business government contractor complain that these requirements are too lenient or that the processes need more rigor.

Government contracts are not awarded lightly. Before granting a contract, agencies conduct thorough evaluations to ensure that businesses meet strict performance, cost, and schedule criteria. Firms must also comply with stringent regulations covering labor, cybersecurity, supply chain, and financial matters. A small business must meet all requirements before entering a competition. Securing a federal contract is no easy feat; any small business that receives one has demonstrated its capabilities.

If we are genuinely committed to bolstering America’s industrial base and securing our economic prospects, we should be expanding opportunities for small businesses, not undermining them. These companies foster innovation, create jobs, and offer crucial services that large corporations often overlook.

Entrepreneurs nationwide work diligently, displaying commitment, resilience, and tenacity to establish and expand businesses capable of competing in the federal marketplace. They deserve better than the misguided criticisms they are facing.

Rep. Nydia M. Velázquez (D-N.Y.) serves as the ranking member of the House Small Business Committee, with Rep. Gil Cisneros (D-Calif.) acting as the ranking member of the House Small Business Subcommittee on Contracting and Infrastructure.