Government contracts are increasingly an attractive revenue source for entrepreneurs forming an LLC, and 2009 figures showed small businesses are obtaining more federal dollars and a larger portion of total available contracts.
Official 2009 data from the U.S. Small Business Administration revealed 21.8 percent of all federal government money was contracted to small businesses – an increase from 2008.
"Small businesses received a record $96.8 billion in federal contracts in 2009," said Karen Mills, SBA Administrator. "There was an increase in both dollars and contracting share for every small business category. This represents real progress, but not enough, we must reaffirm our commitment to ensuring that the 23 percent goal is met and exceeded."
Disadvantaged small businesses, such as women- or disabled veteran-owned companies and those operating in economically underperforming zones, all captured a larger portion of federal contracts in 2009.
Figures for 2010 may be even higher as many small businesses have acquired government contracts to help with the BP oil cleanup efforts in the Gulf of Mexico. A similar expansion of government disaster-recovery contracts occurred in the Gulf region after Hurricane Katrina struck in 2005.
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