SelectGCR Blog

Startups could lose funding as Pentagon’s SBIR program hangs in the balance
by Sid Wambach
October 9, 2025
 
Small Business Fund: The Path Ahead for Government Contractors

In the ever-evolving landscape of government contracting, small businesses often find themselves navigating a maze of opportunities and challenges. Recent discussions surrounding the Department of War’s (DoW) Small Business Innovation Research (SBIR) program highlight the critical role these funds play in supporting innovation and growth among service providers. However, as the government reassesses its funding mechanisms, it raises questions about the future and sustainability of these programs.

 
Understanding the Current Landscape

The DoW’s SBIR program is designed to foster technological innovation through partnerships with small businesses. It aims to bridge the gap between the commercial and military sectors. However, with changing priorities and budget limitations, the program is at a crossroads. According to the latest reports, there are concerns about the efficiency of fund distribution and the effectiveness of the vetting process for small businesses seeking to work with the government. With funding potentially on the chopping block, it’s vital for service providers to stay informed about these developments.

For many small businesses, especially those that are veteran-owned, women-owned, or minority-owned, the path to government contracting can be particularly competitive. Understanding how these funding mechanisms work is crucial for accessing the right resources and support. This is where Select GCR steps in.

 

There is a lot of resentment in the [startup] community that goes after SBIR awards, that 20 percent of the money is going to companies that are just doing research and development and are not able to create, whether by intent or just lack of capacity, they are not creating products and services that are competitive on the open market,” said Eric Blatt, the executive director of the Alliance for Commercial Technology in Government

 
U.S. Sen. Joni Ernst (R-IA) is the chair of the Senate Small Business and Entrepreneurship Committee, as well as a member of the Senate Armed Services Committee. (Photo by Andrew Harnik/Getty Images)
 
Why Government Contracts Matter

For small businesses, government contracts can be a game-changer. They provide not only a source of revenue but also stability and growth opportunities. Engaging with the government can lead to long-term partnerships that significantly enhance a business’s portfolio. If you’re currently contracted with the government or considering it, knowing how to navigate the complexities of these contracts is essential.

 
Benefits of Government Contracts
  1. Stable Revenue: Most government contracts often come with long-term commitments, and a reliable income stream.
  2. Growth Opportunities: With the right contracts or grants, small businesses can expand their operations, hire more staff, and invest in new technologies.
  3. Support for Diverse Businesses: Programs such as the Veteran-Owned Small Business (VOSB), Service-Disabled Veteran-Owned Small Business (SDVOSB), and HUBZone initiatives aim to support diverse businesses in accessing government contracts, making it easier for eligible companies to compete.
 
How Select GCR Can Help

At Select GCR, we understand the challenges that small businesses face in securing government contracts. Our expertise lies in helping service providers navigate the often-complex landscape of government contracting. Whether you’re new to the process or an established contractor, we can guide you through the necessary steps, including:

  • Registering for SAM and GSA: We provide detailed guidance on how to register your business in the System for Award Management (SAM) and the General Services Administration (GSA) schedules, essential steps for anyone interested in government work.
  • Understanding Eligibility Programs: We help you determine if your business qualifies for various government programs designed for executive order compliance, veteran, women, or minority-owned businesses, ensuring you can access untapped resources and funding.
  • Preparing Competitive Proposals: Our team assists in crafting proposals that stand out, increasing your chances of winning contracts.
  • Navigating Grant Compliance: We help you understand the compliance requirements associated with government contracts and grants, making sure you meet all necessary regulations.

For more insights into how we can assist you, check out our resources on Proposal Writing Tips, and Eligibility for Small Business Programs.

 
The Importance of Staying Informed

As the DoW and other government agencies reassess their funding strategies, it’s essential for small businesses to stay abreast of these changes. The landscape can shift quickly, and being informed allows you to adapt your strategies accordingly. Keeping an eye on industry news, attending relevant workshops, and engaging with contracting professionals can provide valuable insights into upcoming opportunities.

 
Resources to Keep You Updated
  • Tap Into Grants: Our team is skilled at researching the most credible grants and consistently presenting you with options.
  • Government Procurement: Once a grant or contract has been identified, we can draft, finalize and submit your proposal with the foresight from thousands of proposals our team oversees.
  • Exploring Alternatives: Engaging with other databases and potential partners can open doors to new opportunities and collaborations.
 
Conclusion: Preparing for the Future

While the future of the DoW’s small business funding may seem uncertain, the opportunities for small businesses in government contracting remain robust. By staying informed, leveraging available resources, and connecting with experts, you can navigate this landscape successfully. At Select GCR, we are here to assist you every step of the way, ensuring you have the tools and knowledge necessary to thrive in the government contracting arena.

If you’re ready to take the next step or have questions about government contracting, reach out to us. We’re here to provide the guidance and support you need to succeed.

 
Sources:
  • U.S. Small Business Administration
  • National Defense Authorization Act for Fiscal Year 2023. (2022)
  • Government Accountability Office (GAO)
  • Breaking Defense

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