Partner Training: Small Business Certifications

Small Business Certifications

Partner Service & Sales Training

Introduction to Small Business Certifications

I. Introduction to Small Business CertificationsII. Types of CertificationIII. Why Get CertifiedIV. Qualifying for CertificationV. BizCentral USA’s Certification Process

Small Business Certification

• Many contractors are unaware of the numerous small business certification and assistance programs that exist today to aid underprivileged businesses.

• Many of these programs are aimed specifically at overcoming the effects of discrimination.

Gateway to Opportunity

• Assists the most disadvantaged entrepreneurs in succeeding.

• Facilitates small business owners’ achievement in the contracting arena.

• Helps socially and economically disadvantaged firms in obtaining the credentials necessary to compete with larger entities.

Obtaining Certification

• Numerous government entities offer innovative opportunities to assure that small contractors are not left behind in the race for federal contracts.

• Some teach small companies how to compete in the federal contracting arena.

• Programs are available to demonstrate how to take advantage of greater subcontracting opportunities available from large firms as the result of public-private partnerships.

Types of Certification

I. Introduction to Small Business CertificationII. Types of CertificationIII. Why Get CertifiedIV. Qualifying for CertificationV. BizCentral USA’s Certification Process

Types of Certification

• SBA- 8a

• Women’s Business Enterprise National Council

• Minority Supplier Development Council

• HUB Zone

• Veteran Owned Business

• Department of Transportation

8(a) Business Development Program

• The SBA 8(a) program is designed to help small disadvantaged businesses compete in the U.S. economy through business development. The program benefits the client as well as the contractor by providing small disadvantaged businesses with:

• The ability to pursue and award sole-source procurements.

• Limited-competition opportunities in the government arena.

• Ensuring the client that bonding, insurance, and other legal requirements are met.

• Through sole-source contracts, businesses are given an opportunity to enter the government- contracting arena, and gain the experience necessary to compete in the full and open market. Competitive bidding on limited opportunities allow 8(a) contractors to gain valuable experience in various market arenas.

SBA HubZone Empowerment Contracting Program

• 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.

DOT Disadvantaged Business Enterprise (DBE) Program

• The DOT (Department of Transportation, DBE Program assists small businesses owned and controlled by socially and economically disadvantaged individuals, including minorities and women, in participating in contracting opportunities created by DOT financial assistance programs.


• Primarily three major DOT operating administrations are involved in the DBE program:

• Federal Highway Administration

• Federal Aviation Administration

• Federal Transit Administration.

• The DOT DBE program is carried out by state and local transportation agencies under the rules and guidelines in the Code of Federal Regulations.


• The main objectives of the DBE Program are:

• To ensure that contractors comply with DBE laws and requirements. • To ensure that DBEs can compete fairly for

federally funded transportation-related projects. • To ensure that only eligible firms participate

as DBEs. • To assist DBE firms in competing

outside the DBE Program.

Women’s Business Enterprise National Council

• WBE (Women's Business Enterprise) is an independent business concern that is at least 51% owned and controlled by one or more women who are U.S. citizens or Legal Resident Aliens.

• Business formation and principal place of business must be in the US.

• Management and daily operation is controlled by one or more of the women owners.


• Being certified as a WBE means that a business concern has gone through a rigorous and stringent certification process to confirm the business is owned, managed, and controlled by a woman or women.

• WBENC is the Women's Business Enterprise National Council and is comprised of 14 regional partner organizations. All of the partner organizations adhere to WBENC's stringent Standards and Procedures in their certification programs.

• WBENC provides access to a national standard of certification and provides information on certified women's businesses to purchasing managers through its Internet database, WBENCLink.

• The certification lasts for one year. If you wish to remain certified, you must recertify each year.


Nat’l Minority Supplier Development Council

• The National Minority Supplier Development Council has standardized procedures to assure consistent and identical review and certification of minority-owned businesses.

• These businesses are certified by NMSDC's affiliate nearest to the company's headquarters.


• A minority-owned business is a for-profit enterprise, regardless of size, physically located in the United States or its trust territories, which is owned, operated and controlled by minority group members.

• "Minority group members" are United States citizens who are Asian, Black, Hispanic and Native American.


• Ownership by minority individuals means the business is:

• At least 51% owned by such individuals

• Or, in the case of a publicly-owned business, at least 51% of the stock is owned by one or more such individuals.

• The management and daily operations must be controlled by those minority group members.

Veteran-Owned Business

• A business is a Veteran-Owned Small Business if:

• Not less than 51% is owned by one or more veterans • Or, in the case of any publicly owned business, not

less than 51% of the stock of which is owned by one or more veterans

• Management and daily business operations are controlled by one or more veterans.

Veteran-Owned Business

• To be considered a Veteran you must have your DD Form 214 (Certificate of Release or Discharge from Active Duty) in order to prove your service in the Armed Forces.

• To be considered a Service Disabled Veteran you must have a letter from the Department of Veterans Affairs (VA), or your discharge paper from the branch of service you were in, stating that you have a service connected disability rating ranging from 0 to 100% disability.

Why Get Certified

I. Introduction to Small Business Certification

II. Types of CertificationIII. Why Get CertifiedIV. Qualifying for CertificationV. BizCentral USA’s Certification

Process

Why Be Certified?

• The SBA Certification in the SDB, the 8(a) DBE, or the HUBZone Program provides benefits by:

• Bringing more dollars to an eligible company through SDB procurement mechanisms;

• Targeting competition to specific industries where there are disparities; and

• Increasing economic activity in distressed communities.

Why Be Certified?

• SDB certified companies may benefit in one of two ways:

• First, an SDB can qualify for a price evaluation adjustment when bidding as a prime contractor.

• Second, all prime contractors are encouraged to use certified SDB's as subcontractors through mandated evaluation factors and optional monetary incentives.

• HUBZone certified businesses can qualify for specific procurement benefits. Businesses that use these benefits are also helping to improve the economy of the distressed area.

Qualifying for Certification

I. Introduction to Small Business Certification

II. Types of CertificationIII. Why Get CertifiedIV. Qualifying for CertificationV. BizCentral USA’s Certification

Process

Preliminary Steps

• All certification clients must have a D-U-N-S (Data Universal Numbering System) number:

• Can be requested by visiting http://www.dnb.com or calling (866) 785-0428

• If applying for Small Business Administration 8(a) Certification or completing GSA schedule, business must be registered in Central Contractor Registration (CCR).

• Register with CCR at http:/www.ccr.gov

Qualifying for Certifications

• 8(a)• 51% owner(s) must be a socially and

economically disadvantaged US Citizen.

– Socially disadvantaged means a member of a racial/ethnic minority group, but service disabled veterans, women in non-traditional fields, physically handicapped persons, etc. can also apply, provided they can demonstrate social disadvantage in their narrative.

– Economically disadvantaged = personal net worth < $250,000 (excluding primary residence and equity investment in business).

• Business needs to have operated for at least 2 years


• WBE Certification:• 51% owner(s) must be a woman US Citizen or

Permanent Resident

• Proof of effective management and control of business (day to day operations, hiring and firing authority, signature on contracts and loans, and other business decisions) by applicant woman/women.

• Proof of contribution of capital and/or expertise by women.


• NMSDC Certification:• 51% owner(s) must be a member of a recognized racial

or ethnic minority group (Asian, Black, Hispanic or Native American).

• Proof of effective management and control of business (day to day operations, hiring and firing authority, signature on contracts and loans, and other business decisions) by applicant minority owner.

• Proof of contribution of capital and/or expertise by minority owner.


• MBE Certification:• 51% owner(s) must be a member of a recognized

racial or ethnic minority group (Asian, Black, Hispanic or Native American), or in some cases, women.

– Some MBE programs at the county/local level also accept women-owned businesses as MBE applicants.

• Proof of effective management and control of business (day to day operations, hiring and firing authority, signature on contracts and loans, and other business decisions) by applicant minority owner.

• Proof of contribution of capital and/or expertise by minority owner.


• DBE Certification:• 51% owner(s) must be a socially and economically

disadvantaged US Citizen.• Business must work in road, highway, or bridge

construction and related professional services. • Some state DBE programs are also of interest to firms

working in the aviation industry.

Certification Process

I. Introduction to Small Business CertificationII. Types of CertificationIII. Why Get CertifiedIV. Qualifying for CertificationV. BizCentral USA’s Certification Process

Our Process

• Step 1: As always, clients will complete and return the Terms & Agreement document.

• Step 2: Clients will receive access to the ‘Certifications Steps Page’.

• From here all certifications may take a different route to completion.

• The following pages will cover the next steps for each certification.

8(a) Process

I. Obtain a D-U-N-S number.

II. Register with CCR.

III. Create an SBA General Login System Account at https://eweb.sba.gov/gls/

IV. Complete online application.

V. Once online application has been completed, submit application along with supporting documentation to the SBA.

I. Supporting documentation include business financial statements (Profit and Loss reports, balance sheets, etc.), tax returns, operating agreement, stock certificates, etc.

VI. Application is then reviewed and screened. The SBA will respond with a determination or request for additional documentation within 90 days.

DBE Process

I. Obtain a D-U-N-S number.II. Create a WBENCLink account at http://www.wbenclink.orgIII. Complete online application.IV. Once online application has been completed, submit application

along with supporting documentation to the WBENC certifying council in the business’ home state.

I. Supporting documentation include business financial statements (P&L reports, balance sheets, etc.), tax returns, operating agreement, stock certificates, etc.

II. Certification may require an on-site visit.V. Application is then reviewed and screened. The WBENC

Program Manager will respond with a determination or request for additional documentation within 90 days.

SMSDC Process

I. Obtain a D-U-N-S number.II. Locate the proper application. Application may be

completed electronically, depending on the certifying council.

III. Once application has been completed, submit application along with supporting documentation to the Regional NMSDC certifying council.

I. Supporting documentation includes business financial statements (Profit and Loss reports, balance sheets, etc.), tax returns, operating agreement, stock certificates, etc.

II. Certification may require a number of on-site visits.IV. Application is then reviewed and screened. The NMSDC

certifying committee will respond with a determination or request for additional documentation within 90 days.

MBE Process

I. Obtain a D-U-N-S number.II. Locate the proper application. Application may be completed

electronically, depending on the certifying agency. III. Once completed, submit application along with supporting

documentation to the certifying agency.I. Supporting documentation include business financial

statements (Profit and Loss reports, balance sheets, etc.), tax returns, operating agreement, stock certificates, etc.

II. Certification may require an on-site visit.IV. Application is then reviewed and screened. The certifying

agency will respond with a determination or request for additional documentation within 90 days.

I. Certifications at the county/local level are generally processed in less time than those at the State level.

DOT Processs

I. Obtain a D-U-N-S number.

II. Complete the Uniform Certification Application (UCP)

I. All states use the same application form.

III. Submit application along with supporting documentation to the state DOT or Aviation Authority.

I. Supporting documentation include business financial statements (Profit and Loss reports, balance sheets, etc.), tax returns, operating agreement, stock certificates, etc.

I. Application is then reviewed and screened. The certifying agency will respond with a determination or request for additional documentation within 90 days.

Conclusion

• The process for applying for inclusion in these programs can be grueling.

• Assistance from a professional can help tremendously in providing and submitting the correct information!

• Once certified, the small business is able to optimize the benefits that their certification program/s offer.