Federal contractors get incentives to hire small businesses in Puerto Rico

The US government is changing its contracting rules to encourage large federal contractors to use small businesses in Puerto Rico and other US territories. This means companies that win big federal contracts will get credit for subcontracting work to these specific small businesses.

For years, federal contracting has aimed to support small businesses, but specific territories often struggled to compete. This rule change creates a direct financial incentive for large contractors to seek out and partner with businesses in places like Puerto Rico. It could mean more economic activity and job creation in these territories, which often face unique economic challenges.