SMALL BUSINESS CERTIFICATIONS
Small businesses that meet certain prerequisites (such as operating in an underutilized business location or being owned by U.S. veterans) are eligible for certifications through government agencies such as the SBA or GSA. These small business certifications can grant access to even more funding and unique opportunities throughout the federal and private sectors.
GOVERNMENT CERTIFICATIONS FOR SMALL BUSINESSES
More than $178 billion in government contracts were awarded to small businesses last year:
WOMEN-OWNED SMALL BUSINESS CERTIFICATION (WOSB)
In 2011, Congress instated the WOSB program through the Small Business Administration, or SBA. It gives female business owners the opportunities and support they need to excel in industries where women have historically been disproportionately restricted.
Now, the federal government reserves 5% of the annual contracts to be allocated to WOSB-certified businesses each year. This translates to billions of dollars in exclusive work opportunities that other registered businesses in the federal marketplace can’t apply for.
VETERAN-OWNED SMALL BUSINESS CERTIFICATION (VOSB)
In 2003, Congress passed the Veterans Benefits Act to jumpstart supplier networks across the nation. It gives Veteran-Owned Small Businesses (VOSBs) the room they need to thrive amongst the larger corporations in their field.
Put simply, Certified Veterans have earned themselves the right to enjoy exclusive contracting opportunities that are restricted from the rest of their competition.
HUBZONE CERTIFICATION
In 1998, Congress enacted the HUBZone Empowerment Act as a part of the Small Business Reauthorization Act. Its purpose was to assist business owners operating in historically underutilized business zones (or HUBZones), and later evolved into the SBA’s HubZone program that we have today.
In compliance with the act, the federal government now reserves 3% of all contracting opportunities allocated each year just for small businesses operating in HUBZones. That means billions of dollars in exclusive government work opportunities, just for being located in an underutilized location of the country.
8(A) CERTIFICATION
In 1967, the U.S. Government merged two key federal systems to form the nation’s 8(a) program. This merger gave minority and disadvantaged owners of small businesses support and resources they previously didn’t have access to. The 8(a) Business Development Program helps these disadvantaged businesses succeed and thrive in their industries.
Today, 5% of annual federal contracts are now reserved for 8(a) small business owners. While 5% might not seem like a lot, it’s actually billions of dollars in exclusive work and grant opportunities that businesses who aren’t 8(a)-certified can’t compete for.
MBE (MINORITY BUSINESS ENTERPRISE) CERTIFICATION
Unlike the federal-focused 8(a), a Minority Business Enterprise (MBE) certification identifies businesses largely owned, controlled, and operated by individuals belonging to specific minority groups. This government contracting certification is designed to empower minority entrepreneurs, including those from both racial and ethnic minority groups, by providing them with access to contracting opportunities and resources.
To meet the criteria and successfully register for MBE certification, a business must meet certain requirements such as being at least 51% owned and controlled by a minority and being physically located in the United States or its territories.
GSA CERTIFICATION
First established in 1949, the U.S. General Services Administration (GSA) is designed to streamline the government’s administrative tasks. It also provides organizations with a direct line of work to the federal government through the GSA Multiple Award Schedule Program (Schedule).
The eligibility criteria for GSA Certification varies depending on the specific program or schedule, but they typically involve businesses doing less than $1,000,000 in annual revenue that have several past performance references, and have complied with relevant regulations.
HOW CAN FEDERAL SMALL BUSINESS CERTIFICATIONS HELP?
Getting the proper government certifications can give your small business a boost with advantages such as:
- Small business set-asides help to level the playing field among larger government contracting companies.
- The federal government is the biggest spender in the world which can provide a reliable source of income for your business.
- Some federal certifications for small businesses, such as 8(a) and WOSB, are sole-source awards and can only be bid on by certified companies.
- More opportunities to help businesses build new relationships and expand their network of contacts.
- SBA certifications provide businesses with enhanced visibility and credibility in the federal marketplace.
FEDERAL CONTRACTING SERVICES WITH FAMR
It isn’t just about navigating government certifications and paperwork – At FAMR, we’re here to unlock new opportunities for your small business. Based in Florida, our team of experienced contracting professionals go beyond just the sign-up process. We’re here to offer strategic guidance to maximize your eligibility and government contracting potential. We don’t stop there – our team will also develop a customized marketing and branding strategy to help you stand out in the government marketplace.
With a combined 25 years of experience, clear communication, and a commitment to transparency, you can trust FAMR to be your partner in achieving your government contracting goals. Reach out today and learn how we can empower your small business with a competitive edge.