# Plain Language Summary of H.R. 5276

This bill changes how much federal government money must go to certain types of small businesses when the government buys goods and services. Right now, the government has targets for how much contract money should flow to different categories of small businesses—like those owned by women, veterans, or people from disadvantaged backgrounds. This bill increases those targets over the next few years.

Specifically, the bill raises the goals for two categories of small businesses. For women-owned small businesses and businesses owned by socially and economically disadvantaged people, the target goes up from 3 percent to 4 percent of all federal contract money. For service-disabled veteran-owned small businesses, the targets increase gradually: starting at 6 percent in 2022 and 2023, then jumping to 7 percent in 2024 and beyond. For all small businesses combined, the government's target increases significantly—from the current level up to 11 percent in 2022, then 12 percent in 2023, 13 percent in 2024, and finally 15 percent in 2025 and beyond.

What this means in practical terms is that federal agencies will be required to direct a larger share of their purchasing power toward small businesses. If you own or work for a small business in these categories, this bill could mean more opportunities to bid on government contracts and potentially more business. For taxpayers and the general public, the idea behind this is that spreading federal spending to small businesses can help them grow, create jobs, and strengthen local economies. However, it also means federal agencies will need to work harder to find and work with these businesses to meet the higher targets.

To amend the Small Business Act to modify Govermentwide goals for certain small business concerns.

 <p>This bill increases federal government goals for procurement contracts awarded to certain small businesses (e.g., women-owned small businesses and small businesses owned and controlled by socially and economically disadvantaged individuals).</p>