Military Spouse Entrepreneurs Seek Greater Access to Federal Contracts

Advocates representing military spouse-owned small businesses are urging Congress to adopt legislation to ease financial barriers and expand access to federal contracts.

A coalition of military spouse-owned small businesses, led by the Military Spouse Chamber of Commerce and the Reserve Organization of America, called on lawmakers from both parties Thursday on Capitol Hill to pass the Military Spouse Small Business Recognition Act.

The legislation would support active-duty and veteran military spouse-owned businesses by addressing funding gaps through several measures, including designating military spouse-owned businesses as a Small Business Administration 8(a) Disadvantaged Category.

The designation would remove financing barriers through the SBA and provide access to government set-aside contracts and sole-source awards up to $4 million. It would also waive SBA loan guarantee fees for loans up to $1 million, reduce equity injection requirements by at least 5 percentage points, and require the SBA to track and report on military spouse participation in loan programs and entrepreneurial development resources.

The push echoes broader Trump administration efforts to lower barriers to entry for companies seeking to work with the federal government and strengthen partnerships that accelerate the adoption of innovative commercial technologies across agencies.

Economic Impact

Because military families move often with service members’ assignments, this creates unique challenges that make traditional employment extremely difficult. Stephanie Brown, CEO and co-founder of U.S. Military Spouse Chamber of Commerce, noted that the unemployment rate for military spouses is 22%, the highest of any group in the U.S.

This can impact family finances, which can affect military readiness, Brown said. Many military spouses start their own businesses to make ends meet, she added, citing studies that found 48% of military spouses are either self-employed small business owners or interested in starting a business. The reports cite lack of capital as a key barrier to entry.

Easing these hurdles would allow more military spouses to start businesses, many of whom want to work with the government. “70% of our members, when polled, are interested in government contracting,” Brown told GovCIO Media & Research.

Brittany’s Story

Brittany Westling is the president and owner of the consulting firm Team b. Strategy, a consulting firm specializing in strategy, communications, marketing, design, training and government relations.

Her firm works with the government, but she noted that initially ramping up the business to support her first big contract proved challenging because she could not access 8(a) support.

“Having access to this type of incubator would have helped me so much in my entrepreneurship journey,” she said.

The lack of resources has meant that her business growth has been entirely self-funded.

“We are still a cash-based business 15 years in,” she told GovCIO Media & Research.

Team b. Strategy is successful, but in getting there, she regrets missing the opportunities an 8(a) would have provided.

“I shudder to think at the cost of lost opportunities we could have had if we had access to capital and could have leveraged it to grow Team b. in smarter ways. Grit shouldn’t be the only requirement for success,” Westling said.

VA Support

The federal government offers some support to military spouses, notably from the Department of Veterans Affairs Office of Small and Disadvantaged Business Utilization (OSDBU). The office provides access to opportunities in one of the largest procurement systems in the federal government, said OSDBU executive director Chanel Bankston-Carter.

Speaking at the event, she noted that her office is committed to working with other federal agencies to ensure that military spouses have access to the resources they need. OSDBU also provides training, education and guidance to help new businesses “better understand how to compete, how to position themselves and how to navigate the federal space.”

A former military officer and military spouse, Bankston-Carter said she understood the predicament in which many military families find themselves. Her mission at the OSDBU is to expand opportunities for military spouses by reducing barriers.

“I may not be able to give you an opportunity — to give you a procurement — but I’m going to try to make sure I give you access and awareness to the right people that can help you get there,” she said.