SBA Certification Eligibility Requirements

 

Type

 

Program Term

 

Certification Process

 

Eligibility Requirements

 

Benefits

8(a)

9 years

Formal Online and Manual Application

  • Must be a small business
  • Must be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the U.S.
  • Must demonstrate potential for success
  • Initially, the individual's net worth, after excluding the individual's equity in the firm and the equity in the primary residence, may not exceed $250,000. SBA will also consider the individual's average two-year income, fair market value of all assets, access to credit and capital, and the financial condition of the applicant firm in evaluating economic disadvantage. Once accepted into the program, the net worth criteria is $750,000.

 

  • Sole-source contracting opportunities
  • Set-aside 8(a) procurement opportunities
  • Subcontracting opportunities
  • Automatically qualify as SDB with all of its benefits

HUBZone

Unlimited - As long as meets eligibility requirements

Formal Application

  • Must be a small business
  • Principal office must be located in HUBZone
  • Must be owned and controlled by one or more U.S. citizens
  • 35% of employees must reside in HUBZone
  • Special bidding opportunities (competitive, sole-source)
  • 10% price evaluation preference on full and open contracts
  • Subcontracting opportunities on federal contracts
  • 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.

 

DOT DBE

Three years, upon which time the firm can complete a recertification application and be recertified provided it meets all eligibility requirements.

Formal application

  • Must be an existing for profit business and meet federal definition of a small business based on its primary SIC/NAICS code as described by SBA
  • Disadvantaged owner must be a U.S. citizen and meet federal definition of socially and economically disadvantaged as defined in 49 CFR 26.67.
  • Disadvantaged owners must hold at least 51% ownership in the firms and must control day-to-day operation and management of the business.
  • When a firm's primary line of work requires a professional license, the disadvantaged owner must hold the license.
  • Personal net worth of a disadvantaged owner cannot exceed $750,000.

 

  • DBE Subcontracting goals for prime contractors
 
 
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