Small Disadvantaged Businesses

Small Disadvantaged Businesses (SDB) are companies owned by individuals who have been socially and economically disadvantaged due to race, color, religion, gender, disability, or veteran status. They must also meet specific size standards set out by the Small Business Administration (SBA). SDBs are eligible for special preference in federal contracting activities and may receive additional contract awards if they meet acceptance criteria.

SDBs may receive additional contract awards if they can demonstrate their ability to perform the work on a timely basis, at a fair and reasonable price, and in a manner that meets the requirements of the contracting agency. This can be done by bidding for contracts or submitting applications for specific set aside contracts.

SDBs may also receive special consideration when competing for contracts. This special consideration is based on criteria such as the size of the business, the type of industry in which it operates, its financial resources, the number of employees, and any other factors that may indicate that the SDB has been subjected to social or economic disadvantage.

In addition to preferential treatment and access to capital, SDBs may also receive assistance in other areas. For instance, the SBA provides technical and management training programs to help SDBs develop the skills needed to succeed in government contracting. The SBA also provides access to resources such as market research and marketing tools that can help SDBs gain a competitive edge in the bidding process.

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A business may be classified as an SDB if over 51% of ownership or control is vested in a disadvantaged individual. This disadvantaged person is defined as:

• Socially disadvantaged: People who have experienced racial discrimination or prejudice in the United States.
• Economically disadvantaged: Socially disadvantaged people that lack access to capital and credit due to an inability to compete in the free market.

To qualify as a Small Disadvantaged Business, the firm must meet specific criteria set out by the Small Business Administration (SBA). These criteria include:

• Ownership: A socially and economically disadvantaged individual must own and control the business. This individual can be of any race, color, religion, gender, disability, or veteran status.
• Size standards: The business must meet the SBA's size standards. Generally, the company must have at most 500 employees or less than $7 million in annual receipts.
• Performance: The business must demonstrate its ability to perform work on a timely basis, at a fair and reasonable price, and in a manner that meets the requirements of the contracting agency.
• Creditworthiness: The business must have the financial resources to meet its obligations.
• Management capacity: The business must demonstrate its ability to manage the contract effectively and efficiently.

The Small Business Administration (SBA) is a federal agency that provides resources and support to small businesses. The SBA provides access to capital, training and counseling services, information on government contracting opportunities, and other services designed to help small businesses succeed.

The SBA's Office of Small Disadvantaged Business Utilization (OSDBU) is responsible for overseeing the development and implementation of programs to help SDBs succeed in government contracting. The OSDBU also provides information on federal contracts and contracting opportunities and assists SDBs in competing for those contracts.

The SBA's 8(a) Business Development Program is a business assistance program designed to help SDBs access government contracts. The program provides various services, including management and technical assistance, financial assistance, and access to capital. The 8(a) Program also provides participants exclusive access to specific government contracts set aside for SDBs.

The SBA also offers other resources and services to help SDBs succeed. These include programs such as the Women-Owned Small Business Program, which helps women-owned small businesses gain access to government contracts; the HUBZone Program, which allows companies located in Historically Underutilized Business Zones (HUBZones) to gain access to federal contracts; the Service-Disabled Veteran-Owned Small Business program, which helps service-disabled veterans gain access to federal contracts; and numerous other programs; and the All Small Mentor-Protégé Program, which assists SDBs in the form of joint ventures and other cooperative arrangements.

The objective of the Small Disadvantaged Business (SDB) program is to help SDBs gain access to government contracts and create jobs. Congress mandated the SBA to promote SDBs in government contracting, and these programs are designed to do just that.

The SBA offers several programs for SDBs, including:

8a Business Development Program

The 8(a) Business Development Program is an important business assistance program designed to help small disadvantaged businesses (SDBs) access government contracts.

"The federal government's goal is to award at least 5% of all federal contracting dollars to small disadvantaged businesses each year." (SBA)

The 8(a) Program provides various services such as management and technical assistance, financial assistance, and access to capital. Additionally, it gives participants exclusive access to specific government contracts set aside for SDBs. Furthermore, the program helps small businesses develop business strategies and plans and build their capacity to compete in the federal marketplace.

The 8(a) Program is open to all small businesses that meet the eligibility criteria established by the SBA. These criteria include that the company must be owned and controlled by a socially or economically disadvantaged individual or individuals, have been in operation for at least two years, and demonstrate potential for success.

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HUBZone program

The HUBZone Program is a federal program administered by the Small Business Administration (SBA). This program was established to help businesses located in Historically Underutilized Business Zones (HUBZones), areas with significant economic and employment challenges, gain access to federal contracts.

Participants in the HUBZone Program are eligible for unique preferences when competing for government contracts. These preferences include a 10% price evaluation preference in full and open contract competitions and sole source contracts up to certain thresholds. Furthermore, the program provides participants access to the HUBZone Mentor-Protégé Program, which helps businesses develop their capacity to compete for federal contracts.

To be eligible for the HUBZone Program, businesses must meet specific criteria. These include that the company must be owned and controlled by a U.S. citizen, have its principal office in a HUBZone, and have at least 35% of its employees reside in a HUBZone.

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SBA Mentor-Protégé Program

The Mentor-Protégé Program (MPP) is an SBA -sponsored program that helps small disadvantaged businesses (SDBs) access government contracts. Through this program, SDBs receive assistance from larger firms through joint ventures and cooperative arrangements.

Under this program, eligible SDBs can partner with larger businesses to gain access to capital, technical expertise, management experience, and other resources needed for competing for government contracts. Furthermore, these partnerships can lead to the formation of joint ventures, which are eligible for specific contract preferences.

Businesses must meet specific MPP criteria established by the SBA. These criteria include that the company must be owned and controlled by a socially or economically disadvantaged individual or individuals, have been in operation for at least two years, and demonstrate potential for success.

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Native American 8(a) Business Development Program

The Native American 8(a) Business Development Program is a specialized business assistance program specifically designed to help Native American-owned small businesses gain access to government contracts. This program, established by the Small Business Administration (SBA), provides personalized support and assistance to these businesses that face economic or social disadvantages when competing for federal contracts.

The program provides Native American-owned businesses access to certain government contracts set aside expressly for them. Additionally, it provides participants with management and technical assistance, financial assistance, and access to capital. Furthermore, the program helps small businesses develop business strategies and plans and build their capacity to compete in the federal marketplace.

To be eligible for this program, businesses must meet specific eligibility criteria. These include that the business must be owned and controlled by a Native American individual or individuals, have been in operation for at least two years, and demonstrate potential for success.

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Women-Owned Small Business Federal contracting program

The Women-Owned Small Business (WOSB) Federal Contract Program helps women-owned businesses access federal contracts. The program was established to correct the fact that women have been historically underrepresented when competing for government contracts. This program provides targeted contracting preferences and opportunities to WOSBs in order to help them become more competitive in the federal marketplace.

Businesses must meet specific WOSB criteria established by the SBA. These include that the business must be at least 51% owned and controlled by one or more women who are U.S. citizens, have been in operation for at least two years, and demonstrate potential for success.

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Veteran-Owned Small Business program

The Veteran-Owned Small Business (VOSB) Program is an initiative established to help businesses owned and controlled by veterans gain access to government contracts. This program provides veterans with unique contracting preferences and opportunities to help them become more competitive in the federal marketplace. Many Veteran-Owned Small Businesses like Federal Hearings & Appeals Services (FHAS) leverage Deltek’s GovWin IQ as a cost-effective extension of their business development team.

Businesses must meet VOSB criteria established by the SBA. These include that the company must be at least 51% owned and controlled by a veteran or veterans who are U.S. citizens, have been in operation for at least two years, and demonstrate potential for success.

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Small businesses may self-certify as an SDB, but they are still required to register their business on the System for Award Management (SAM). Before registration, you need to complete a few additional steps.

• Obtain a DUNS number: Obtaining a DUNS number provides a unique entity identifier (UEI) as issued by Dun & Bradstreet. When you request a DUNS number, you should get it within 1-2 business days.
• Gather applicable data: Before registration, it is necessary to provide the relevant data related to your business, such as the Taxpayer Identification Number, banking information, and entity information. You must complete some questionnaires and forms to be eligible to bid on federal contracts.
• Get a login.gov account: Registering for a login.gov account will give your business access to government services, benefits, and other solutions. This account will provide you with a username and password for registering for SAM.gov.

Once the above steps have been finished, the registration process on SAM.gov can begin. Once you have completed the registration process, you can monitor its progress through the SAM Status Tracker. The registration process through SAM may take up to 10 business days and up to 24 hours for the relevant information to update on other government systems.

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The Small Disadvantaged Business (SDB) program has significantly impacted the economy. Assisting these businesses has opened up many new opportunities for them to compete for government contracts and access capital, technical expertise, and other resources. This increased competition has led to more innovation and better products at lower prices, benefiting consumers and businesses.

Additionally, SDBs are often minority-owned businesses, so their success creates economic opportunities in underserved communities. Furthermore, the joint ventures formed by SDBs have resulted in job creation and economic growth in many areas. Overall, the SDB program has been instrumental in driving economic progress and creating equitable opportunities for small businesses.

It is important to note that for an SDB program to be successful, it must provide comprehensive and targeted assistance. This assistance includes access to capital, technical assistance, mentorships, and other resources. The SDB program should also promote collaboration between small businesses and larger corporations. These collaborations can help small businesses to develop their skills and expand their customer base while providing larger companies with innovative solutions.