Transcript Loan Workshop 10 5 2010

An Overview of
SBA Contracting
Programs
U. S. Small Business Administration
Washington Metropolitan Area District Office
SBA Washington
Metropolitan Area District
• District of Columbia
• Montgomery County, MD
• Prince George’s County, MD
• Fairfax County, VA
• Loudoun County, VA
• Arlington County, VA
• Cities of Alexandria & Fairfax
U. S. Small Business Administration
Washington Metropolitan Area District Office
Contracting Support
U.S.
Government:
The World’s
Largest
Customer
Federal
Contracts =
over
$500 Billion +
per year
(FY2013)
U. S. Small Business Administration
Washington Metropolitan Area District Office
Contracting Goals
PROCUREMENT TARGETS:
Small Businesses: 23%
Service-Disabled Vets: 3%
SDB: 5%
Women-owned: 5%
$500 Billion +
per year
HUBZone: 3%
U. S. Small Business Administration
Washington Metropolitan Area District Office
General SBA Size Standards
 Manufacturing
500 to 1,500 employees
 Wholesaling
100 employees
 Servicing
$4.5 Million/ $35.5 Million
 Retailing
$7 Million / $35.5 Million
 Construction
$7 Million /33.5 Million
 Agriculture
$750,000 / $17.5 Million
U. S. Small Business Administration
Washington Metropolitan Area District Office
Types of Contracting Certification
Self-Certified:
Small Disadvantaged Businesses
Service Disabled Veteran-Owned Businesses
Women-Owned Small Businesses
SBA-Certified:
HUBZone Empowerment Contracting Program
8(a) Business Development Program
U. S. Small Business Administration
Washington Metropolitan Area District Office
Determining Economic
Disadvantage
SBA will examine:
 Personal income for the past three years
 Personal net worth
 Fair market value of all assets
 Spouse’s financial condition, in certain
circumstances
*when married, separate statements from each spouse to
show each individual’s joint or community property shares
and separate property
U. S. Small Business Administration
Washington Metropolitan Area District Office
Small Disadvantaged Business
(SDB) Eligibility Requirements
 Self-certifying
program through the System for
Award Management (no application)
 The
firm must be 51% or more owned and
control by one or more disadvantaged persons.
 The disadvantaged person or persons must be
socially disadvantaged and economically
disadvantaged.
 The firm must be small, according to SBA’s size
standards
U. S. Small Business Administration
Washington Metropolitan Area District Office
Small Disadvantaged Veteran
Owned Business (SDVOB)
Service-disabled veteran means a veteran with a disability
that is service-connected.
Size: Must be small according to SBA size standards
Ownership: Must be at least 51% directly and
unconditionally owned and controlled by one or
more service-disabled veterans
Documentation: Owner(s) must have rating letter from VA
Status: Owner(s) must have Form DD-214 indicating
honorable discharge
U. S. Small Business Administration
Washington Metropolitan Area District Office
Benefit of SDVOB Program
 Provide
procuring agencies the authority to set
acquisitions aside through CFR) 13 C.F.R. § 125.8125.10)
 Set Aside Requirements and Exemptions
The requirement is not exempted from SDVO contracting
 Reasonable expectation that at least two responsible
SDVO SBC will submit offers / at a fair market price.

 Sole
Source Contracts
If the requirement is not exempted from SDVO
contracting and cannot be set-aside.
 The CO does not have a reasonable expectation that at
least two responsible SDVO SBCs will submit offers.

U. S. Small Business Administration
Washington Metropolitan Area District Office
Women Owned
Small Business Program
 51%
 83
owned
Industry NAICS Codes
 157
Industries “Under Represented”
 217
Industries substantially under-represented
 Economically
Disadvantaged Women Owned Small
Business (EDWOSB)
 Eligible
 The
for set-aside contracts.
next 8(a)! Section 8(m)
U. S. Small Business Administration
Washington Metropolitan Area District Office
WOSB Program: EDWOSB
An Economically-Disadvantaged WomanOwned Small Business (EDWOSB) is a WOSB
which is owned by a woman or women whose:
Personal Net Worth < $750,000
Average Annual Income < $350,000
Total Assets < $6,000,000 (including primary
residence and business)
U. S. Small Business Administration
Washington Metropolitan Area District Office
HUBZone Empowerment
Contracting Program
HUBZone = Historically Underutilized Business Zone
HUBZones are defined by Census Tract, and are
redefined after every 10-year National Census
U. S. Small Business Administration
Washington Metropolitan Area District Office
HUBZone Requirements
 Must
be a small business
 Concern
must be owned and controlled only by
US citizens
 Principal
office of the concern must be located in
a HUBZone; and
 At
least 35% of the concern’s employees must
reside in a HUBZone
U. S. Small Business Administration
Washington Metropolitan Area District Office
HubZone and SBA’s Role
 Determines
which businesses are eligible to receive
HUBZone contracts
 Maintains
a listing of qualified HUBZone small
businesses that agencies can use to locate vendors
 Adjudicates
protests of eligibility to receive
HUBZone contracts
 Reports
to the Congress on the program's impact
on employment and investment in HUBZone areas.
U. S. Small Business Administration
Washington Metropolitan Area District Office
Benefits of HUBZone
 Competitive
set-aside award if:
 At least two responsible HUBZone small
businesses will submit offers;
 and the resulting contract can be awarded at a
fair market price.
 Sole Source contract award if:
 no reasonable expectation two or more qualified
HUBZone small businesses will submit offers
 determines that the qualified HUBZone small
business is responsible and at a fair price.
U. S. Small Business Administration
Washington Metropolitan Area District Office
Benefits of HUBZone
 Full
and open competition with a price
evaluation preference.
 HUBZone concern considered lower providing
that the offer is not more than 10 percent higher.
For Help:
 Tuesdays and Thursdays from 2-3pm ET call
 Phone: 1-888-858-2144 Access Code 3061773#
 Status of HubZone Application: email
[email protected]
U. S. Small Business Administration
Washington Metropolitan Area District Office
8(a) Business Development
Program
9-year business development program that helps
eligible socially and economically disadvantaged business
owners grow and sustain their companies
The 8(a) program provides:

Training in business management & marketing

Support for teaming with other companies
 Access
to set-aside contracting opportunities
U. S. Small Business Administration
Washington Metropolitan Area District Office
8(a) Eligibility

United States citizen

Socially & economically disadvantaged

Own unconditionally at least 51% of concern

Control & manage concern on full-time basis
Good character - not debarred, suspended, parole
or probation
Two (2) years business history in primary industry
classification, as shown with tax returns (may
sometimes be waived)



Business must be small per SBA’s size standards
U. S. Small Business Administration
Washington Metropolitan Area District Office
8(a) Eligibility Criteria
•
Owner income not any greater than $250,000
(which must not exceed $350,000)
•
Business owner net worth many not exceed
$250,000. (which must not exceed $750,000)
Personal Net Worth
less
Equity in primary residence
less
Equity in business
equals
Adjusted Net Worth
(which must not exceed $6,000,000)
*when married, separate statements from each spouse to show each
individual’s joint or community property shares and separate property.
U. S. Small Business Administration
Washington Metropolitan Area District Office
For more information and to keep
informed of events go to:
www.sba.gov/dc
U. S. Small Business Administration
Washington Metropolitan Area District Office