Native Firms Capture $6.8 Billion, Add 109,000 Jobs through SBA 8(a) Program

Native News Network Staff in Native Currents. Discussion »

WASHINGTON – Addressing Native poverty through the SBA 8(a) program not only shifts economic activity, it stimulates the economies of some of the poorest communities in the country as it replaces welfare and/or social service spending, moves people into the labor force, and stimulates Native capital growth – especially Native human capital.

“The story is compelling, as our study clearly shows how important this program is to our Native communities,”

stated Lance Morgan, Chairman of the Native American Contractors Association.

The impact is some $6.8 billion sold to the Federal Government.

The $6.8 billion of 2011 federal contracting requires Native firms to purchase input goods and services and to hire workers, according to the Native American Contractors Association along with Taylor Policy Group, which released these findings late Tuesday afternoon.

The estimated economy wide impacts include:

109,000 jobs;
almost $6 billion in wages and benefits; and
a total GDP contribution of $9.6 billion.

"Our goal is for the study to serve as a glaring illustration of the importance and success of Native participation in the SBA 8(a) program. This study is made available not to only our membership, but also for the agencies and legislators that work with, and seek information from, Tribes, Alaska Native Corporations, and Native Hawaiian Organization when it comes to government contracting matters and concerns,"

stated NACA's Executive Director, Kevin Allis.

The 8(a) program helps address economic, social, environmental, and cultural needs that are vitally important to the strengthening of Native communities. The report demonstrates the broad impact – and importance – of the 8(a) program. The report found:

Surveys from about half the membership of the Native American Contractors Association, representing about half of the Native 8(a) contracting volume in 2010, recorded employment of 56,076 people and distributions of $111.5 million through dividends, scholarships, direct community expenditures, and donations to non Native groups.

“Native participation in the SBA 8(a) program stimulates the economies of some of the poorest communities in the country and creates Native human capital growth.”

Morgan added.

The author of the impact study, Jonathan Taylor, is an economist with expertise in natural resources, gaming, and American Indian development. He provides counsel to tribes in the United States and Canada in the areas of public policy analysis, strategic advice, and economic research. He has authored or supported expert testimony in litigation and other public proceedings for a number of Native groups.

posted May 9, 2012 1:30 pm edt