FED GOVERNMENT TO SPEND $50 BILLION IN SMALL BIZ SET-ASIDES IN NEXT 100 DAYS
Thanks to Richard Lewis for this news you can use
Big Opportunity for businesses in a position to capitalize on this
The U.S. Government will spend $50 billion in small business set-asides in the next 100 days
Washington DC - June 20, 2013:
… Per USASpending.gov, Uncle Sam's overall federal contract spending should be in the neighborhood of $500 billion for FY 2013. It is estimated around $276 billion has been obligated so far in FY 2013. So, it is estimated we have $200+ billion to be awarded in the next 100 days. Of that, 20%-25% should be small business set-asides.
Conclusion: Be in line, reply and win to those RFPs you’re qualified for. But remember you need cash flow to support to fulfill the awards. With the awarded there’s payroll and payables due by the 15th and 30th. On the 1st you invoice the government, then payments on the 15th and 30th, before the invoice is paid, and given the Government’s current state, it could be longer. Do you have the dollars to meet all contract financial requirements? If not, “Payroll or Cash Flow Pain!” as experienced by many start-ups, small and mid-size contractors that are not adequately funded. However, this may not be an obstruction.
When traditional lenders smile and say “Thank you, but no thank you,” what’s next? Alternative Financing? There are many alternatives available; payroll funding, factoring, contract or PO financing, asset-based lending, equipment leasing or sales and lease back, maybe the SBA, SBIRs or Grants.
Richard Lewis retired from Wells Fargo, Government Services Group in 2008 and formed Financial Engineering Counselors, Ltd., a VOSB, to assist in these situations. In 2010 he agreement to be a GovCon consultant to the Payroll Finance Division, Sterling National Bank, est. 1929 (NYSE: STL). By receiving two or three competing Term Sheets/Proposals, you can choose, not settle.
To contact him and learn more, click here .