US Small Business Administrator Isabella Casillas Guzman (left) and NASA Administrator Bill Nelson announced record-high investment in small businesses for government contracts July 18, 2023 at NASA's headquarters in Washington.

The federal government awarded $162.9 billion in contracts with small businesses in fiscal year 2022, exceeding its goal for working with small vendors and setting a record high, the Small Business Administration said. The figure represents a 5.6% year-over-year increase in the volume of small business contract awards made by the U.S. government, up from a total of $154.2 billion during fiscal year 2021.

Over a quarter of federal government contract dollars — 26.5%  — were awarded to small businesses in the last fiscal year, SBA Administrator Isabella Casillas Guzman said Tuesday at an event hosted at NASA’s Washington headquarters. The Biden administration’s goal was 23%.