Federal Certifications and Qualifications Criteria
By obtaining a federal certification, your small business can qualify for a set-aside which the federal government uses to benefit socially and economically disadvantaged businesses. Eligibility for these set asides is determined through U.S. Small Business Administration qualifications.
8(a)
- Be a small business
- Not have previously participated in the 8(a) program
- Be at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged
- Have a personal net worth of $750 thousand or less, adjusted gross income of $350 thousand or less, and assets totaling $6 million or less
- Demonstrate good character
- Demonstrate the potential for success such as having been in business for two years
Economically Disadvantaged Women-Owned Small Business (EDWOSB)
- Meet all the requirements of the WOSB Federal Contracting program
- Be owned and controlled by one or more women, each with a personal net worth less than $750,000
- Be owned and controlled by one or more women, each with $350,000 or less in adjusted gross income averaged over the previous three years
- Be owned and controlled by one or more women, each $6 million or less in personal assets
Historically Underutilized Business Zone (HUBZone)
- Be a small business according to SBA size standards
- Be at least 51% owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization, or an Indian tribe
- Have its principal office located in a HUBZone
- Have at least 35% of its employees living in a HUBZone
Service Disabled Veteran Owned Small Business (SDVOSB)
- Be a small business according to SBA’s size standards
- Be at least 51% owned and controlled by one or more service-disabled veterans
- Have one or more service-disabled veterans manage day-to-day operations who also make long-term decisions
- Eligible veterans must have a service-connected disability
Women-Owned Small Business (WOSB)
- Be a small business according to SBA size standards
- Be at least 51% owned and controlled by women who are U.S. citizens
- Have women manage day-to-day operations who also make long-term decisions
State Certifications and Qualification Criteria
Disadvantaged Business Enterprise Certification (DBE)
- Be a small business as established by the Small Business Administration (SBA). The firm’s annual gross receipts averaged over three years cannot exceed $28.48 million. Actual thresholds depend on the specific type of work the firm performs (See Application Forms for specifics).
- Firms must be at least 51% owned and controlled by socially and economically disadvantaged individuals. Most minority classes and all women are considered socially disadvantaged. Owner’s whose personal net worth is less than $1.32 million (not including your primary residence and business) are considered economically disadvantaged. If the owner has the ability to accumulate wealth you may not meet the standard.
- Owners must demonstrate they “control” the firm. That is have the final decision making authority, hold the highest position in the company, and have the knowledge, education, and /or experience in the specific type of work the firm performs. If the owner(s) have outside employment, you may not meet the standard for control. For more information please read the brochure.
- Firms must be independent – i.e., the viability of the firm is not dependent on another firm. An independent firm cannot share personnel, equipment, or facilities.
Small Business Enterprise Certification (SBE)
- The eligible owner(s) controls 100% of the firm. An “eligible owner” is an individual who meets the requirements of items (2) and (3) below.
- Gross sales receipts of the firm do not exceed $7,500,000 averaged over a five-year period.
- The eligible owner’s personal net worth does not exceed $1.32 million.
- The eligible owner(s) is actively involved in the day-to-day management and control of the firm, as well as the delivery of its products and services.
- The firm is a bona fide existing business that performs work for the purpose of making a profit. A newly formed firm may be certified. Not-for-profit organizations are not eligible to be certified as SBEs.
- The firm is independent as indicated by the absence of control or influence of a non-SBE firm. The firm does not share personnel, facilities, equipment, financial or other resources with a non-SBE firm. The firm is not “affiliated” with a non-SBE firm as defined by Small Business Administration Regulations, 13 CFR part 121.
- The firm seeking SBE certification must cooperate fully with the Department’s requests for information relevant to the certification process. Failure or refusal to provide such information may result in denial or removal of certification.
