| Many private businesses have preferred vendor programs for small, women-owned, minority, and HUB (historically underutilized businesses) businesses. There are also three SBA programs, which are based on economic disadvantage for either the business owner or the area where the business is operating. |
| Small business |
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Small businesses are self-certified, meaning that you look at the rules and if you satisfy them, you are considered a small business. The rules are based on your total receipts and/or employees and your NAICS code. If you have less than $750,000 in receipts and fewer than 100 employees, you qualify. If you exceed either of these limits, go to
http://www.census.gov/eos/www/naics/ and search for your NAICS code for the specific requirement.
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| Women-owned |
| If 51% of your business is owned and operated by women, you can self-certify as a woman-owned business at
http://www.pro-net.sba.gov. This is a free database maintained by the SBA and is used by the federal government and
large government contractors looking for women-owned businesses.
There are also private certifications required by some businesses. For example,
some businesses use the Women's Business Enterprise National Council (WBENC) for certification. There is a cost for this certification (basically a membership fee). For further information, go to http://www.wbenc.org or call 202-872-5515. Another private certification process is sponsored by
the National Women Business Owners Corporation (NWBOC) at http://www.nwboc.org or call 561-881-7364. |
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| Minority |
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If 51% of your business is owned and operated by minorities, you can be independently certified as a minority business through the National Minority Supplier Development Council at
http://www.nmsdc.org/nmsdc/. They also have a certification if
your business has 30%+ equity controlled by minorities. For further information, call 212 944-2430 |
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| (SBA) Small Disadvantaged Business |
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The SDB program is to help economically and socially disadvantaged businesses in government procurement. SDB businesses are eligible for a "price evaluation adjustment" of up to 10% when bidding as a prime contractor for federal jobs. In addition, all companies receiving federal contracts have financial and regulatory incentives to sub-contract to SDB businesses.
To be classified as economically and socially disadvantaged, you must have a net worth less than $750,000 and either belong to a group that has been designated as economically or socially disadvantaged, or prove that you personally meet those qualifications. For further information, visit http://www.sba.gov. |
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| (SBA) 8(a) Program |
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The SBA 8(a) program is for substantially the same group of people as the SDB program, but it focuses on business development training and identifying economic opportunities. In the 8(a) program, the business enters into a 9- year development process with the SBA and is assigned a Business Opportunity Specialist, who coaches the business owner. SBA 8(a) participants are given access to SBA loans as well. SBA 8(a) participants must have a net worth less than $250,000. You may apply for both the SDB and the 8(a) program.
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| (SBA) Veterans |
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Veterans are eligible for assistance from the SBA's Veterans Business Development Officers. Disabled veterans are eligible for government contracting assistance. For more information, visit http://archive.sba.gov/aboutsba/sbaprograms/reservists/businessdev/index.html. |
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| (SBA) HUB-Zones |
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The SBA HUB program encourages any size business to locate and hire employees from "historically under-utilized business areas". This program is
based on two criteria:
- Your business must be located in a HUB-zone. To determine this, go to http://map.sba.gov/hubzone/maps/ and enter your business address.
- At least 35% of your employees must live in a HUBZone. You are required to check their address at the same website to verify that they qualify.
A portion of federal contracts are reserved for HUB-zone businesses. For information about the HUB program, visit https://eweb1.sba.gov/hubzone/internet/ |
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| More information on SBA programs |
| For complete information on the SBA certification programs, click here. To apply,
visit https://eweb1.sba.gov/hubzone/internet/general/dsp_enter_application.cfm.
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More resources
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- Win Government Contracts for Your Small Business
- Selling to State and Local Government: Understanding the Government Buyer
- Doing Business with the Government Using EDI
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