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A small business is an entity that is independently owned and operated, not dominant in the field of operation in which it is bidding on government contracts, organized for profit and qualified under specific criteria and size standards.
- The Small Business Administration (SBA) has a size standard for all private sector industries in the U.S economy, using the North American Industry Classification System (NAICS) to identify industries.
- Central Contractor Registration (CCR) has the classification standard according to the SBA.
- A small business may not exceed the numerical standards for its industry.
- Size standards are often stated in number of employees or average annual receipts which represent the largest size that a business may be to remain classified as a small business for SBA's programs.
- Click here for the most current information on the small business size standards for a variety of industry groups. For additional information http://www.sba.gov/
Small Disadvantaged Business
A small and disadvantaged business is a small business entity owned and controlled by a socially and economically disadvantaged individual and is at least 51 percent owned by one or more socially and economically disadvantaged individuals.
- Must be a socially disadvantage individuals who are individuals who have been subjected to racial and ethnic prejudice or cultural bias within American society because of their identities.
- Must be economically disadvantage individuals who are also socially disadvantaged whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities.
- **As of October 1, 2008, small businesses may now self-certify as a small disadvantaged business. For additional information visit http://www.sba.gov/aboutsba/sbaprograms/sdb/index.html
8(a) Business Development Program
Section 8(a) of the Small Business Act is a business created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.
- Must be a small business
- Must be unconditionally owned and controlled by one or more socially and economically disadvantage individuals who are of good character, citizens of the United States, and
- Must demonstrate potential for success.
- Must register with and be certified by the Small Business Administration.
For additional information visit SBA 8(a) Business Development Program
Veteran - Owned Small Business
A small business that is at least 51% owned by one or more qualified veterans, and the management and daily business operations of which are controlled by one or more qualified veterans.
- The term "veteran" means a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable.
Service - Disabled Veteran Small Business
A business concern at least 51% owned by one or more qualified disabled veterans whose disability is service related, and the management and daily business operations of which are controlled by one or more qualified service disabled veterans.
- The term "service-disabled veteran" means a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable, and whose disability was incurred or aggravated in line of duty in the active military, naval, or air service.
- A veteran with 0 to 100% disability rating is eligible to self represent as a Service-Disabled Veteran for Federal contracting purposes.
Women - Owned Small Business
A women-owned small business is a small business at least 51% owned by one or more women, and management and daily business operations controlled by one or more women.
For additional information visit http://www.sba.gov/womeninbusiness
Historically Underutilized Business Zone
A Historically Underutilized Business Zone (HUBZone) is a small business owned and controlled 51% or more by one or more U.S citizens. This contracting program is intended to encourage the award of contracts to small business located in designated economically distressed urban and rural areas.
- Must be small business
- Owned and controlled only by U.S citizens
- Have the "principle office" located in a HUBZone
- Have at least 35% of the company's employees residing in a HUBZone. The small business does not have to be the same HUBZone as the company's principal office.
- Certified by the Small Business Administration (SBA)
For additional information visit SBA HUBZone (https://eweb1sp.sba.gov/hubzone/internet/)
Last updated: June 21, 2012