Each new presidential election brings to the forefront issues of concern for small federal contractors. During the 2012 race between Democratic President Barack Obama and Republican challenger Mitt Romney, federal vendors have been worried about impending spending cutbacks.

“In the last six months, I’ve had countless conversations about sequestration, procurement problems and the general dire straits of the contracting world,” Nick Wakeman, editor of Washington Technology newspaper for federal contractors, wrote in a recent blog entry. “Many industry veterans say that the market is the worst they’ve seen.”

Looming federal budget cuts are not the only issue. There also is angst about the future of the Small Businss Administration, small business set-asides, taxes and healthcare.

In this “2012 Election Edition,” Set-Aside Alert is spotlighting how the presidential candidates stack up on those five issues of importance to small federal contractors, along with commentary from the National Federation of Independent Business (NFIB) and the Small Business Majority.

Federal spending cuts

Obama’s $3.8 trillion budget for fiscal 2013 amounted to a 2% cutback when accounting for inflation. Romney has stated in his 5-point plan he wants to immediately cut federal discretionary non-defense spending by 5%.

The NFIB supports less federal spending. “Generally they want to see less government,” said Cynthia Magnuson, NFIB spokeswoman. For the small business majority, the key is reducing uncertainty about spending, said spokesman Rhett Buttle. “The number one thing that small business wants is to be able to compete.”

Future of the SBA

Romney’s proposed 5% cutback presumably would hit the SBA, including agency outreach and loans. The Romney campaign did not respond to inquiries.

Obama increased funding for the SBA, from $569 million in fiscal 2008 to $919 million in fiscal 2012. Also, Obama elevated the SBA chief to a cabinet position. In 2011, he sought to merge SBA into the Commerce Department for efficiency’s sake, but that proposal did not win support.

“Romney’s lack of a plan is worrisome,” Buttle said. “We have seen GOP administrations in the past, including Ronald Reagan and George W. Bush, try to eliminate or demote the SBA.”

NFIB was not concerned. “SBA is not on our radar,” said Magnuson.

Small Business Set-Asides

Obama has supported the 23% goal for small business set-asides.

Romney has no stated position. “It is an important issue but we do not have specifics,” Buttle said. NFIB also declined comment, and Magnuson said the issue was low on the list of concerns to its members.

Taxes

Romney has said he would permanently extend the Bush tax cuts, benefiting individual small business owners with pass-through incomes of $200,000 or more, or joint filers making $250,000.

Obama wants to extend the benefits for filers with incomes below $200,000 only (below $250,000 for joint filers); he would allow the Bush tax breaks to expire for those above the caps.

About 750,000 small business owners make more than those caps, Magnuson said.

However, Buttle said that represents only 3% of small busienss owners. “The reality is that 97% of small business owners do not make above the caps,” Buttle said.

Healthcare

Obama made the health care reform law his priority, while Romney wants a repeal. Under the law, millions of uninsured individuals gain access to insurance; also, businesses with more than 50 people must provide coverage.

“The important thing is that 96% of all small businesses are not affected by the mandate to provide coverage,” Buttle said.

However, Magnuson of the NFIB said that requirement for employer-provided coverage was “onerous.”