Small Business Program

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What is a Small Business Concern?

The Federal Acquisition Regulation (FAR) defines a small business concern,  including its affiliates, as independently owned, and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria and size standards in 13 Code of Federal Regulations Part 121 (also see FAR Subpart 19.102).

A small business subcontractor is defined as a concern that does not exceed the size standard for the North American Industry Classification Systems (NAICS) code that the prime contractor determines best describes the product or service being acquired by the subcontract.  

How to Conffirm if Business is Small?

You may visit the beta.SAM.gov website to confirm if an entity is registered to conduct business with the Federal government and to confirm its size or  small business status.

What are Small Business Goals?

Each year the USAID works with the U.S. Small Business Administration (SBA) to set goals for small business participation in prime contracts and subcontracts. To ensure that we meet the SBA goal, USAID set internal small business goals for its bureaus, Independent Offices and Missions.

What is a Small Business Set-Aside?

A small business set aside is the “reserving” of an acquisition exclusively for participation by small businesses (this does not include non-U.S. small businesses). A small business set-aside may be open to all small businesses. A small business set-aside of a single acquisition or a class of acquisitions may be total or partial.

What are the Federal Small Business Programs?

8(a) Business Development Program
The 8(a) Business Development Program, commonly referred to as the 8(a) Program was developed to help small businesses compete in the American economy and access the federal procurement market (FAR Subpart 19.8).

Small Disadvantaged Business
A small and disadvantaged business (SDB) 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 (see FAR subpart 19.304).

Historically Underutilized Business Zone
A Historically Underutilized Business Zone (HUBZone) is a small business owned and controlled 51 percent or more by one or more U.S. citizens. This contracting program is intended to encourage the award of contracts to small businesses located in historically underutilized business zones, to increase employment opportunities, investment, and economic development in those areas (FAR Subpart 19.13).

Service-Disabled Veteran Owned
A service-disabled veteran owned small business (SDVOSB) must be 51 percent 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 veteran (FAR Subpart 19.14).

Veteran-Owned
A veteran-owned small busines (VOSB) is at least 51  percent owned by one or more veterans (as defined at 38 U.S.C.101(2)) or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more veterans; and the management and daily business operations of which are controlled by one or more veterans.

Women-Owned
A women-owned small business (WOSB) is a small business at least 51percent owned by one or more women, and management and daily business operations controlled by one or more women. An economically disadvantaged women-owned small business (EDWOSB) is a subcategory of “women-owned business concern” as defined in 2.101 (FAR Subpart 19.15).

Economically Disadvantaged Women-Owned
An economically disadvantaged women-owned small business (EDWOSB) concern is at least 51 percent directly and unconditionally owned by, and the management and daily business operations of which are controlled by, one or more women who are citizens of the United States and who are economically disadvantaged in accordance with 13 CFR part 127. It automatically qualifies as a women-owned small business (WOSB) concern eligible under the WOSB Program.

Last updated: January 28, 2021

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