Excitement is building around the new bipartisan infrastructure deal that was passed in the U.S. Senate on August 10, 2021, also known as the Infrastructure Investment Jobs Act, as part of President Biden’s “Build Back Better” plan. This bill would allocate $1.2 trillion in new spending for roads, bridges, public transportation, electric vehicle charging stations, broadband internet, cleaner water and other physical infrastructure, creating jobs and pulling the U.S. economy out of a pandemic. This comes at a time when small businesses are trying to recover from labor constraints and business losses to due to COVID-19 and the impacts of the climate crisis.
The Senate approved this bipartisan bill in a 69-30 vote, but the House of Representatives will not take up legislation until the Senate passes a separate, $3.5 trillion budget resolution that includes priorities such as immigration and childcare.
As for small businesses, this bill is expected to create many opportunities to obtain contracts with federal projects once it makes its way through state governments. Here are three key opportunities small business should pay close attention to:
- More support for workers. Federal spending requires businesses to pay their contractors and laborers appropriate wages based on the location of the project. Industries with large union concentrations, like the public transportation industry, stand to benefit. These are good-paying jobs that help American families.
- Revitalizing local communities. With more access to broadband, greener power infrastructure and environmental clean-up solutions, this bill presents revitalization prospects to small businesses in local communities. Local communities are the driving force in the economy, and improvements to roads and bridges will allow agriculture to move easier and allow people to travel. The prospect of increasing broadband infrastructure throughout states is key to the future of rural development. Improvements to broadband infrastructure can help small businesses as the economy shifts to online services and shopping.
- Helping the climate crisis through energy efficiency. Reducing energy demand is critical to reaching net-zero targets, and the bill includes a range of programs to continue this effort. The bill will invest in existing initiatives to create more avenues for increasing efficiency in commercial, residential and industrial institutions. For example, it includes the Energy Savings and Industrial Competitiveness Act of 2019, which supports stronger building energy codes.
Congressional leaders Senate Majority Leader Chuck Schumer and House of Representatives Speaker Nancy Pelosi want to pass the infrastructure bill along with a $3.5 trillion reconciliation package, which will invest in childcare, paid leave, education, and efforts to combat climate change.
Doing business with the federal government will require effort from small business managers who wish to prepare for the bidding process. The SBA offers a wide array of programs and hands-on assistance to small businesses considering the federal marketplace. Visit their website http://www.sba.gov and familiarize yourself with the programs and services they offer. From this site, you can identify local SBA contracting experts who can be an invaluable resource to you, whether you are new to government contracting or are currently doing business with the government and are seeking advice on how to deal with a particular issue.
EDGAR RAFAEL OLIVO is a bilingual business educator, economic advisor, and contributor for several media outlets. He’s a nonprofit executive who is passionate about education. He is certified in finance and data analytics and holds a business degree from Arizona State University.
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