Certifications “Interpreting the alphabet to pursue profits” Overview Understand Requirements Possibilities Manage Own Control Process Government Corporations Implement Rita Haake, Director Illinois Procurement Technical Assistance Center College of DuPage

Assistance College of DuPage offers you assistance through the Center for Entrepreneurship in aspects of establishing your business and growing your business. PTAC services offered Customized computerized bid opportunity matching (1400) Registration assistance Certification assistance Proposal review Proposal preparation assistance Market research Procurement history reports We offer FREE one-on-one advising and a variety of workshops to help your business, not only survive but thrive! SBDC Services offered Financial analysis/checkup Management assessment Development marketing plan Identify potential funding options Business Plan analysis Entrepreneurs and small business owners can obtain the needed advising FREE in management, marketing, financial and operations. ITC Services offered: Market research for potential global markets Assist in identifying international competitors Guide in finding new or additional distribution channels Assess export readiness Go Global! New and expanded information tools and services make it easier for firms of all size to enter the international marketplace. The specialized and customized FREE advising services

Understand Certifications are only a “tool in your toolbox”  Small business designation  Governmental agencies may have procurement rules in place with identified goals for a diverse business population.  Supplier diversity goals for corporations  Formal process is required. Application and additional documentation.  Dependent on the evaluating office a site visit may be required.  Specific certifications are required at specific levels of government federal government does not recognize MBE certification.  Most basic eligibility factor: must be, at least, 51% owned by individual claiming status i.e. minority, woman, etc.  Multiple choices for different certifications

Understand OPTIONS:  Local  City of Chicago (WBE/MBE/DBE) – fee based  Cook County (WBE/MBE/VBE)  Women’s Business Development Center/WBDC (WBE) Chicago Minority Supplier Development Council/MSDC (MBE)  State  Central Management Services/CMS (FBE/MBE/PBE/VBE)  US DOT - Disadvantaged Business Enterprise (DBE)  Metra, PACE, CTA, City of Chicago, IDOT  Federal  8a Business Development Program  Women Owned Small Business (WOSB/EDWOSB)  HUBZone Program  Small Disadvantaged Business/SDB  Veteran Owned/Service Disabled Veteran Owned (VOSB/SDVOSB)

Possibilities City of Chicago City of Chicago (WBE,MBE,DBE)  $ application fee  Contracting goal  Expedited process available Cook County Cook County (WBE,MBE, VBE)  $ application fee  Veteran certification – no charge  Contracting goal Central Management Services/CMS Central Management Services/CMS (WBE,MBE,VBE,PBE)  No fee  Contracting goal  Annual renewal  Recognition Application – expedited process

Possibilities Women’s Business Development Center/WBDC Women’s Business Development Center/WBDC (WBE) (private certifier)  $ application fee  WBENC - Subcontracting  Annual renewal (approx. $ fee) Chicago Minority Supplier Development Council /CMSDC Chicago Minority Supplier Development Council /CMSDC (MBE) (private certifier)  $ application fee  MSDC - Subcontracting  Annual renewal (approx. $ fee)

Possibilities Disadvantaged Business Enterprise Disadvantaged Business Enterprise (DBE)  No fee  US Department of Transportation  Social (6 designated groups) & Economic ($1.32M)  Small business (federal regulation)  National presence  Application is similar to state process but federal regulations apply  Certify through IDOT, Metra, PACE, CTA, City of Chicago  Area of specialty focus: which agency should you apply to?

Possibilities SBA 8a Business Development Program  U.S. Small Business Administration/SBA oversight  Eligibility  2 years in business (with revenues)  Individual net worth less than $250,000  US Citizen  Small business (defined by NAICS)  Formal online application  Social & economic disadvantaged narrative - KEY  No fee  9 year program

Possibilities SBA HUBZone  U.S. Small Business Administration/SBA oversight  Eligibility  Headquarters must in an identified HUBZone (Census Track)  35% of company workforce resides in an HUBZone  US Citizen  Small Business (defined by NAICS)  Online application  No fee

Possibilities SBA/Women Owned Small Business Program (WOSB) SBA/Economically Disadvantaged WOSB (EDWOSB)  U.S. Small Business Administration/SBA oversight  Eligibility:  Must be under one of 83 NAICS identified  2 possibilities: WOSB & EDWOSB  Must be small business  Must be 51% or more owned, controlled, managed  Submit required documentation to online repository

Possibilities Small Disadvantaged Business (SDB)  Self certification: SAM  Eligibility based on socio & economic factors  Small business – NAICS/federal government  Social factors: designated group i.e. 51% of more owned by African American, Native American, Hispanic American, Asian/Subcontinent American, Asian/Pacific American (US citizen).  Economic factors: individual claiming SDB status must own a majority (51% or more) share AND must have a individual net worth of less than $750, (excluding home and/or business)  Subcontracting applicability

Possibilities  Veteran Owned Small Business (VOSB) Veteran Owned Small Business  must be small (NAICS)  DD214  Self certification: SAM  Validation: US Veterans Administration  Only applicable within the US VA  Service-Disabled Veteran Owned Small Business (SDVOSB) Service-Disabled Veteran Owned Small Business  must be small (NAICS)  DD214  Self certification: SAM  Validation: US Veterans Administration

SmallWBEMBEPBEVOSB/SDVOSBDBE8(a)SDBHUBZone Cook County 10%25% VBE – no goal City of Chicago 10%25% State of Illinois 673 categories set aside 20%3% IDOT 673 categories Set aside PACE Metra CTA Tollway 674 categories set aside Federal Government23%5% SDVOSB 3% VA only – 10% VOSB 7% SDVOSB 5% 3% Subcontracting (large corporations) 23%5% WBDC CMSDC SDVOSB 3% 5% 3%

Process Exclusive or ultimate and sole control Shall be real, substantial and continuing, not pro forma Shall include the power to direct or cause the direction of the management and policies of the business and Shall make the day-to-day as well as major decisions in matters of policy, management and operations. Full time devotion Shall be exemplified by possessing the requisite knowledge and expertise to run the particular business and control Shall not include simple majority or absentee ownership.

Process Documentation checklist (can vary):  capital investment (initial)  all other financial matters (purchases, loans)  property, acquisitions  contract negotiations  legal matters  officer-director-employee selection  comprehensive hiring, operating responsibilities  cost-control matters  income and dividend matters  financial transactions

Process Lease/tax bill (business location) Professional license (CPA, JD….) Manufacturer agreement, if applicable (proof of warehouse/Chicago) Evidence of gender, race and/or citizenship (birth certificate, passport) Resumes (work history, credibility/knowledge) Automotive equipment (loans, titles) Equipment lease agreements Production equipment Bank signature card/resolution Proof of contribution (capital investment) Certificate of Insurance, if applicable Bonding Insurance, if applicable

Process  Payroll register  Financial statements (Balance Sheet & Profit Loss)  Federal Corporate Tax Return (3-4 years)  Federal Individual Tax Return (3-4 years)  W-2 forms, 1099 (3-4 years)  Loan agreements  Personal Net Worth statement  Contract/Purchase Orders/Invoices (3)

Process  Ownership documents  Assumed name certificate  Partnership agreement  Articles of Incorporation  Articles of Organization  Bylaws  Operating Agreement  Stock certificates (front & back)  Minutes of 1 st meeting, current meeting (stakeholders)  Minutes of 1 st meeting, current meeting (Board)  Franchise Agreement  State of Illinois Letter of Good Standing, if applicable

Implement Now use it  Government Agencies  Local  State  Federal  Subcontracting (Supplier Diversity)  Corporations  Requirements?  Governmental agencies may have a registration process  State – 3 step process  Federal – 2 step process  Corporations  Vendor intake process  Research – business rules, registrations, what do they buy  SBLO Point of Contact (governmental contract)

Questions PTAC Contacts Rita Haake: (630) Amber Gardner: (630)