Background
The mission of the Small Business Administration (SBA) is to assist the interests of small business concerns by ensuring that small businesses can compete for and earn a fair share of government contracts. To further its mission, the SBA has created programs for underrepresented populations in business such as women, minorities and veterans. The federal government provides federal contracts for these certified businesses known as “set-asides”.
The SBA set-aside program was created to literally set-aside certain federal contracts for qualifying small businesses. Contracts that fall between $10,000 and $250,000 are set aside for small businesses, and then those qualifying small businesses can compete for the federal contracts.
It is important to also note that any small business seeking this certification must first have an account with SAM.gov, which is an official website of the U.S. government that facilitates businesses to do business or contract with the federal government.
Woman Owned Small Business Program (WOSB)
The purpose of the WOSB program is to provide women with an opportunity to network and obtain federal contracts in industries where women are underrepresented. To that end, the government limits competition on contracts for business that operate in this program. If you are a woman who owns 51% of a small business, you may be eligible for the WOSB program.
You must be an eligible industry as listed on the list of NAICS that qualify. The NAICS industry list is a comprehensive list of 733 eligible industries which is determined every five years by Congress. Congress compiles the list by identifying specific industries where women business owners are less present in the Federal marketplace.
The WOSB program provides resources to level the playing field for women owned small businesses. Obtaining certification provides broad opportunities to grow your business, network, and obtain “set aside” contracts.
Veteran Small Business Certification (VOSB)
Veterans who own at least 51% of a small business may be eligible for the VetCert program. Not only will the U.S. Small Business Administration list you on their website, but there can be other great benefits for your business! All federal government purchases that fall between $10,000 and $250,000 are to be set aside specifically for small businesses if there are two companies that are able to provide products or services at a reasonable price. Veterans Affairs (VA) sets 7% or more of its contracts annually for Veteran Owned Small Businesses!
Minority Business Enterprise Certification (MBE)
Minorities who own 51% of an independent business may be eligible for the MBE certification. Certified Minority Owned Business Enterprises get exposure to new business opportunities through networking with member corporations. In fact, more than 66% of certified MBEs reported an increase in revenue when they partnered with other Corporate Members. Certified MBEs are listed in a supplier database which Corporate Buyers nationwide have access to.
Tap into your potential and invest in your business. Reach out to our firm if you have questions or want help through the MBE certification process.
Revolution Law Group is located in Greensboro, NC, and serves individuals and small businesses throughout the Triad and surrounding areas. To contact us please visit Revolution.law or call 336-333-7907.
The information included here is for informational purposes only, is not exhaustive of all considerations when creating documents, is not intended to be legal advice, and should not be relied upon for that purpose. We strongly recommend you consult with an attorney and do not attempt to create your own documents.