House Small Business Committee Democrats Call for Greater Small Firm Participation in Sandy Recovery

Feb 5, 2013
Press Release


New York Members of the House Committee on Small Business today wrote the Small Business Administration (SBA), calling for small businesses to receive a greater share of Sandy-related federal contracts.    According to recent data, the federal government is not achieving the level of small business participation outlined in federal law.  

“Employing locally owned, small businesses for Sandy recovery projects creates a win-win situation,” said U.S. Rep. Nydia M. Velázquez (D-NY), the Ranking Democrat on the House Committee on Small Business.  “Not only will these firms perform quality work, but when they receive federal contracts they hire from within the community, helping reinvigorate our local economies.” 

"Small businesses from across New York were devastated by the wrath of Hurricane Sandy, and ensuring that they fully recover remains a top priority of mine in Congress," said U.S. Rep. Grace Meng (D-Queens), a member of the Small Business Committee. "Small businesses are the backbone of our economy and our region's prosperity is dependent on their success. I urge the SBA to do everything in its power to get small businesses back up to speed, and making certain that they receive a greater share of Sandy-related contracts would be a major shot in the arm towards accomplishing that critical goal.”
 In a letter to the Administrator of the SBA, Velázquez and Meng noted that only about 15 percent of contracts related to Sandy have gone to small firms, to date.   Federal law calls for agencies to channel 23 percent of contracts to small firms, meaning entrepreneurs are already losing out on millions of dollars in business.  In addition to goals for small firms, federal law includes a number of targets for other disadvantaged businesses, such as those owned by women, veterans and minorities.  Unfortunately, to date, those businesses are also not receiving their share of Sandy-related recovery projects.

“With President Obama’s enactment of the $50.5 billion Sandy assistance package last week, we have to redouble our efforts to make sure that small firms are at the center of these efforts and not an afterthought,” Velázquez stated. “This means increasing outreach to local small businesses, enforcing subcontracting requirements, and using all of the tools available to channel more contracts to New York City’s small firms.”

Last week, Congress approved and President Obama signed into law a $50.5 billion aid package for states affected by Hurricane Sandy.  This legislation will include funding for construction and infrastructure projects, many of which are well-suited for small business participation.  As the letting of these and other Sandy-related contracts continues, Committee Democrats will continue to examine this issue.