Small Businesses Compete for Federal Highway Contracts

U.S. Transportation Secretary Ray LaHood announced $11.6 million in grants to help disadvantaged business enterprises (DBEs) compete for federal highway contracts in 30 states and Puerto Rico. Providing federal aid to DBE firms to improve their ability to compete for and fulfill federal highway contracts, these grants are from the Federal Highway Administration's Disadvantaged Business Enterprise/Supportive Services (DBE/SS) program.

The Federal Highway Administration (FHWA) has been promoting the participation of DBEs in federal-aid highway contracts through state-managed programs since 1982. DBE/SS grants are part of an ongoing federal effort to help state departments of transportation train certified DBE firms on a wide range of business management practices, including procurement assistance and guidance on securing bonding. The goal of the program is to help DBEs successfully compete for federal highway projects.

Another business management practice being used has to do with invoice factoring. Many real estate developers and construction companies are also facing economic slumps thanks to the economy, and many are only barely getting by and are using construction factoring to survive from one job to the next. Many factoring companies are educating small businesses on how to use their services.