Governor Shapiro Gets Stuff Done: Opening Up New Doors of Opportunity for Small and Historically Disadvantaged Businesses

Governor Shapiro signed an Executive Order to increase opportunities for small and small diverse businesses to secure contracts with the Commonwealth and secured historic budget funding for historically disadvantaged businesses for the first time ever.

Harrisburg, PA – During his first year in office, Governor Josh Shapiro and his Administration have gotten stuff done by opening up the doors of opportunities for Pennsylvanians, delivering on a campaign promise to increase opportunities for small and small diverse businesses to compete for state contracts and make the Commonwealth procurement process more accessible.

The Shapiro Administration also secured $20 million of state funding in the 2023-24 budget for small minority-, women-, and veteran-owned businesses across the Commonwealth for the first time ever. That money will be driven out to small diverse businesses in order to help them grow, create jobs, and build generational wealth in communities too often left behind.

As Governor Shapiro said in his first budget address, “I want every Pennsylvanian to know that our Commonwealth values what you bring to the table, and we will take an active role in breaking down the barriers to progress and partnering with you. 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.”

Read more about the Shapiro Administration’s work to open doors of opportunity below.

Opening Up New Doors to New Opportunities for Small and Small Diverse Businesses by Improving State Procurement Practices

• In September, Governor Shapirosigned 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 spend 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.

• As a result of 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 ways to make 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 ever 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. Prior to the Shapiro Administration, it took businesses 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 10 days of receipt of payment from the Commonwealth.

• Bringing small, small diverse, and veteran-owned businesses together to give them a better understanding of 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.

MEDIA CONTACTS: Governor’s Press Office: ra-gvgovpress@pa.gov

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