Port of Long Beach Awards $54.4 Million to Small Businesses in Fiscal Year 2025
The Port of Long Beach, one of the busiest cargo gateways in the United States, has announced a major milestone for its Small Business Enterprise (SBE) Program. In fiscal year 2025, the port awarded more than $54.4 million in services and materials contracts to companies classified as small business enterprises and very small business enterprises. This figure represents nearly 45% of all port funds spent on eligible contracts — a number that places Long Beach among the top-performing public agencies in California for small business inclusion.
For small businesses looking to partner with one of the world's largest seaports, this announcement signals not just a financial commitment, but a long-term strategic vision to build a more inclusive and competitive supply chain ecosystem.
What Is the Port of Long Beach Small Business Enterprise Program?
Established in 2004, the Port of Long Beach's Small Business Enterprise Program was created to ensure that smaller companies have a fair and meaningful opportunity to compete for port-related contracts. As a department of the City of Long Beach, the port operates under public-sector accountability standards, which include setting measurable participation goals for underrepresented business segments.
The program targets two distinct categories of business. The first is the Small Business Enterprise (SBE) designation, which applies to companies that meet specific size thresholds based on annual revenue or employee count. The second is the Very Small Business Enterprise (VSBE) designation, which is equivalent to California's official microbusiness classification. To qualify as a very small business enterprise, a company must have $5 million or less in average annual gross sales over the last three fiscal years, or be a manufacturer with 25 or fewer employees.
Together, these two categories capture a broad range of local and regional businesses — from professional services firms and engineering consultants to suppliers and logistics support companies.
FY2025 Results: One of the Strongest Years on Record
The port's 44.6% small business utilization rate in fiscal year 2025 is the third-highest since the program was founded more than two decades ago. This is a particularly impressive achievement given the scale of contracts the port manages annually and the competitive nature of public-sector procurement.
To put this in perspective, the port's own internal goal for SBE participation is set at 27% — a threshold the port claims is already one of the highest compared to other California ports and municipal agencies. The fact that FY2025 results came in at nearly double that benchmark underscores the effectiveness of the program's outreach and operational strategy.
Port staff participated in more than 40 outreach events throughout the year, connecting small business owners with the resources, knowledge, and contacts needed to successfully bid on port contracts. These events ranged from procurement workshops and networking sessions to targeted seminars aimed at helping business owners navigate the public bidding process.
Why Small Business Participation Matters for a Major Seaport
At first glance, a major international seaport and a small local business might seem like an unlikely pairing. But the Port of Long Beach has consistently articulated a vision in which small businesses are not peripheral players — they are essential contributors to the port's long-term infrastructure and growth.
Port of Long Beach Chief Executive Dr. Noel Hacegaba made this clear in a recent statement:
"Our vision to double our cargo to 20 million containers annually by 2050 and build the Port of the Future is going to take a big team. We want to make sure smaller businesses — the backbone of the U.S. economy — are equipped with the knowledge and ability to compete and win port-related construction and professional services contract opportunities."
That vision — doubling cargo capacity to 20 million containers by 2050 — will require massive investment in infrastructure, technology, and professional services. Small businesses, positioned correctly, stand to be direct beneficiaries of this expansion through construction subcontracts, environmental consulting services, IT support, maintenance work, and more.
How Small Businesses Can Compete for Port of Long Beach Contracts
If you own or operate a small business in Southern California, the Port of Long Beach's SBE Program represents a significant and often underutilized opportunity. Here are key steps to consider when pursuing port-related contracts:
- Verify your eligibility. Determine whether your business qualifies under the SBE or VSBE designation based on annual revenue and employee count criteria aligned with California's microbusiness standards.
- Register with the port's vendor database. Being listed as a certified small business enterprise makes your company visible to procurement officers when contract opportunities arise.
- Attend outreach events. The port hosts more than 40 events per year specifically designed to help small businesses understand how to bid on contracts. These events are invaluable for making direct connections with port staff.
- Understand the types of contracts available. The SBE program covers services and materials contracts, which can include professional services such as engineering, environmental, and IT consulting, as well as material suppliers and facilities-related vendors.
- Build relationships with prime contractors. Many small businesses enter port contracting as subcontractors on larger projects. Partnering with established prime contractors can be a strategic entry point.
The Bigger Picture: Small Business as an Economic Driver
The Port of Long Beach's commitment to small business is part of a broader national conversation about equitable access to public procurement. Across the country, federal, state, and local agencies are being held to higher standards when it comes to ensuring that small, minority-owned, women-owned, and disadvantaged businesses have genuine access to government spending.
With over $54 million flowing to small businesses in a single fiscal year, Long Beach is demonstrating that large public infrastructure agencies can move the needle meaningfully — not just on paper, but in actual contract awards. A 44.6% utilization rate that nearly doubles the stated goal reflects both strong program design and sustained institutional commitment.
For small business owners across California and beyond, the Port of Long Beach's FY2025 results serve as a compelling reminder: public-sector contracts are not exclusively the domain of large corporations. With the right preparation, certification, and outreach strategy, small businesses can compete — and win — at the highest levels of infrastructure procurement.
Looking Ahead: Opportunities Will Only Grow
As the Port of Long Beach continues its ambitious expansion toward a 20-million-container future, the demand for diverse, capable small business partners will only increase. The port has already demonstrated its willingness to invest in outreach, education, and program infrastructure to make that participation real. For small business owners ready to engage, the time to start exploring port contracting opportunities is now.
The $54.4 million awarded in FY2025 is more than a number — it is a statement about what a world-class port believes it takes to build the future of American trade.