Program Certification for Small Businesses

Objectives Certification Programs Overview Benefits Requirements Differences Application Process Marketing to Federal Government

Three Core Certification Programs Small Disadvantage Business (SDB) 8(a) Business Development HUBZone Empowerment Contracting Program

SDB Program Highlights 10% Price Evaluation Adjustment when bidding as prime contracts SDB may not be lowest bidder to win contract Monetary incentives for large businesses that utilize SDBs as subcontractors

8(a) Program Highlights Ability to obtain government contracts through special procedures Memorandum of Understanding (MOU) Agreements with 25 Federal Agencies Allow direct contractual relationship with 8(a) certified firms.

HUBZone Program Highlights HUBZone Empowerment Contracting Program Can negotiate sole-source contracts 10% Price Evaluation Adjustment

Program Benefits Bring more $s to eligible companies Expand economic activity for disadvantaged businesses Target competition in despaired industries. 8(a) BD Program Competitive/Sole-source 8(a) Contracts Management & Technical Assistance 7(j) Training Program Mentor/Protégé Program HUBZone – Competitive/Sole-source HUBZone Contracts higher SBA guaranteed surety bonds Increase economic activity in distressed communities City/State benefits

SDB Requirements At least 51% unconditionally owned/controlled socially & economically disadvantaged Social Disadvantage - individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group. Members of the following designated groups are presumed to be socially disadvantaged: Black Americans Hispanic Americans Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians) Asian Pacific Americans Must be registered in Pro-Net An individual who is not a member of a designated group must establish social disadvantage on the basis of a "preponderance of evidence."

SDB Requirements (cont.) Economic Disadvantage - socially disadvantaged individual whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities. Personal Net worth Threshold ($750,000) Good character and citizens of U.S. Must be a small business concern – 13 CFR 121 (Size Standards)

8(a) BD Requirements Two Year Rule or 2 year waiver Must be small 13 CFR 121 (Size Standards) Unconditionally owned/operated Socially/Economically Disadvantage Personal Net Worth Threshold ($250,000) Good Character U.S. Citizen Potential for Success Must be registered in Pro-Net

HUBZone Requirements Must be small 13 CFR 121 (Size Standards) Principal office must be located within a HUBZone Owned/controlled by one or more U.S. citizens At least 35% of its employees must reside in a HUBZone. Must be registered in Pro-Net

Important Notes SDB recertification every 3 years. 8(a) One Time Program (9 years) 8(a) Certified firms are automatically SDB certified

Salient Differences SDB/HUBZone are contractor programs 8(a) BD is characterized by a tangible relationship with the SBA

Application Process Register on Pro-net at 8(a) BD and SDB Certifications: SBA Form 1010 SBA Form 413 SBA Form 912 SBA Form 1623 IRS Form 4506 SBA Form Library at:

HUBZone Application Process Register on Pro-net at Are you in a HUBZone Check our website at Go to Electronic Applications Processing time approximately 30 days

Marketing to Federal Government Procurement Resources PCR PTAC SUB-net (Subcontracting Oppt.) Federal Business Opportunity website Federal Procurement Forecast at Be Competitive Be Persistent Be Patient

Disclaimer Participation in any and and/or all of these programs does not guarantee a contract award