The Government as a Friend Instead of a Foe

When you think of government and small business, the likely first things that come to mind are taxes and regulations. But thinking about the government this way might be costing you business and opportunities to expand. The truth is that the government does help small businesses. The question then is: How does the government support small businesses?

Government Contracts

The federal government is a massive group of agencies that award millions of dollars in contracts to small businesses every year. While many small business owners think of the government as the enemy and an entity to stay away from, others are taking advantage of the pool of money available to contractors. 

SBA Loans

Contracts are not the only way that that the government supports small businesses. Small business loans through the SBA (Small Business Administration) is another way the government can help small businesses grow. The SBA doesn't loan directly to businesses. It works with local banks, who issue loans. The SBA guarantees a portion of these loans, reducing the risk for banks. This provides small businesses with the chance to be awarded a loan when they may have been otherwise declined.

Administration Assistance

Another way the government helps businesses is through administration. Yes - there are lots of regulations the government imposes on businesses. This isn't just at the federal level. The government refers to federal, state and local entities. While large companies have the resources to keep up with all of these regulations, smaller businesses are at a disadvantage. For this reason, there are government entities in nearly every city and region available to speak with and help businesses owners. Some examples of these entities include:

  • SCORE
  • Small Business Development Center
  • Secretary of State
  • State Department of Treasury
  • Securities Division
  • IRS

These entities can help with getting the right business license, forming a corporation, filing numbers need for employee compensation, business name lookups, forming a Registered Investment Advisor and more.

There are some limits to the amount of help these entities can provide. For example, they can't give you tax advice but can provide you with the right forms, deadlines, and other information to make completing some process simpler. 

How Can The Use Of Secure Communication Software Help?

There are a large number of government agencies in the defense sector who issue contracts to small businesses. Agencies in other security-related sectors do the same. Because of the high level of security involved, there are certain qualifications any business must meet.

Employees that will be working on a contract may be required to obtain a low-grade security clearance. This is done through Homeland Security. Another requirement may be that the business uses secure communications software.

Units within these government agencies may have security protocols that are so strict that secure phone communication is the only viable option. Using third-party applications such as Skype or the messenger app on your phone won't work. Having these agencies install any communications software is also out of the question. They use approved vendors only.

If your business supplies secure communications software and you are already aware of the demands that come with working on a security-related government contract, you may have an advantage over your competition.

Another advantage might come in the form the of holding a security clearance. Once you get a security clearance, it can often be used on multiple contracts. Employees who already hold a security clearance are beneficial to government agencies since they don't have to wait for security clearance approval or worse if the clearance is denied.

To summarize the main points within this article:

  • There are three primary ways that the government supports small businesses: Government contracts, SBA loans, administrative assistance.
  • Companies that use or supply secure communications software may have an advantage over competitors when applying for government work.
  • Once you receive a security clearance, it can often be used with multiple government contracts.

Government agencies have enough on their plate. Choose a world-class SaaS technology solution and focus on what's important: supporting US businesses. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.

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