Government Executive reports that In testimony before the Small Business and Entrepreneurship committee of Congress, the Small Business Administration reported that roughly 26% of all Federal stimulus package related contracts had been awarded to small businesses. 

This is about $4 billion out of $16 billion in stimulus package money awarded so far by federal agencies. As we point out in our report on the stimulus package, the majority of stimulus money is allocated to the states who then spend the money. A relatively small share is spent directly by the feds.

The Department of Defense awarded the highest percentage of stimulus package money to small businesses - 58% of their stimulus package spend. This is because DOD spent most of their stimulus money on construction related projects. Small businesses employ roughly 85% of all U.S. construction workers, so money spent on construction tends to flow to the small business sector.

Federal agencies are expected to spend around $60 billion in total stimulus package money. If they continue to allocate this money as before, around $12 billion worth of additional contracts will be awarded to small businesses in the coming months. 


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