# What the SPUR Act Does

The SPUR Act (Small-business Procurement Utilization Reform Act) makes a straightforward change to how the federal government spends money on contracts with small businesses. Right now, the government has a goal to award 23 percent of its procurement contracts to small business concerns. This bill raises that target to 25 percent, a two percentage point increase.

To understand what this means in practical terms, imagine the federal government spends about $500 billion per year on contracts for everything from office supplies to construction projects to consulting services. Under current rules, the government aims to direct roughly $115 billion of that spending to small businesses. This bill would increase that target to about $125 billion going to small businesses instead. That's an additional $10 billion annually that would theoretically flow toward smaller companies rather than large corporations.

The change takes effect on October 1, 2021, so federal agencies would have to start working toward this new 25 percent goal starting that date. For small business owners, this means there's a slightly larger slice of the federal contracting pie available to them. For taxpayers and the general public, the idea behind this is that small businesses often create more jobs per dollar spent and tend to be more rooted in local communities, so directing more government spending their way could have broader economic benefits. The bill doesn't force agencies to hit this target—it's a goal they're supposed to work toward—but it does signal that Congress wants federal procurement to prioritize small business opportunities more than it currently does.

SPUR Act

Small-business Procurement Utilization Reform Act or the SPUR Act This bill raises from 23% to 25% the government-wide goal for participation by small businesses in procurement contracts.