Print
 Close Window

Government

SBA Certificates

8(a)

The SBA's 8(a) BD Program, named for a section of the Small Business Act, is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.

SBA defines a small business concern as one that is independently owned and operated, is organized for profit and is not dominant in its field. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period. Examples of SBA general size standards include the following:

• Manufacturing:
Maximum number of employees may range from 500 to 1,500, depending on the type of product manufactured.
• Wholesaling:
Maximum number of employees may range from 100 to 500 depending on the particular product being provided.
• Services:
Annual receipts may not exceed $2.5million to $21.5 million, depending on the particular service being provided.
• Retailing:
Annual receipts may not exceed $5 million to $21 million, depending on the particular product being provided.
• General and Heavy Construction:
General construction annual receipts may not exceed $13.5 million to $17 million, depending on the type of construction.
• Special Trade Construction:
Annual receipts may not exceed $7 million.
• Agriculture:
Annual receipts may not exceed $500,000 to $9 million, depending on the agricultural product.

 

HUBZone

The HUBZone Empowerment Contracting Program stimulates economic development and creates jobs in urban and rural communities by providing federal contracting preferences to small businesses. These preferences go to small businesses that obtain HUBZone (Historically Underutilized Business Zone) certification, in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. (A principal office can be different from a company headquarters, as explained in our section dedicated to Frequently Asked Questions.) The program resulted from provisions contained in the Small Business Reauthorization Act of 1997.

Generally speaking, HUBZone certification can bestow two levels of benefits on a firm. The first relates directly to federal contracts, while the second involves specialized assistance.

Federal Contract Benefits
There are four types of HUBZone contract opportunities:

  1. Competitive: Contracts can be set aside for HUBZone competition when the contracting officer has a reasonable expectation that at least two qualified HUBZone small business concerns (SBCs) will submit offers and that the contract will be awarded at a fair market price.

  2. Sole-source: HUBZone contracts can be awarded if the contracting officer determines thatOnly one qualified HUBZone SBC is responsible to perform the contractTwo or more qualified HUBZone SBCs are not likely to submit offersTthe anticipated award price of the proposed contract, including options, will not exceed $5 million for a requirement within the North American Industry Classification System (NAICS) code for manufacturing or $3 million for a requirement within all other NAICS codes.

  3. Full and open: Competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business.

  4. Subcontracting: All subcontracting plans for large business federal contractors must include a HUBZone subcontracting goal.


Other Specialized Assistance

• Eligible HUBZone firms can qualify for higher SBA-guaranteed surety bonds on construction and service contract bids.
• Firms in Federal Empowerment Zones and Enterprise Communities (EZ/EC) can also benefit from employer tax credits, tax-free facility bonds and investment tax deductions.


About Denysys
•Learn more http://www.denysys.com/company/index.php

Contact Info:
Philip Denny
Denysys Corporation
2010 E. Hennepin Ave., Suite 7-217
Minneapolis, MN 55413

Tel: 612.869.7617
Fax: 612.869.7680

» Printed from http://www.denysys.com/government/government_sbac.php