The Small Business Administration was created to help small business owners succeed. They provide a plethora of resources for small business owners, including loans and grants. If you are a small business and want to do business with the government, it’s definitely smart to check SBA government contracting resources.
Do You Qualify For SBA Assistance?
If you have just a handful of employees, it’s probably certain that you qualify as a small business. But many types of businesses with hundreds of employees also qualify as a small business. To see if you qualify, go to https://www.sba.gov/size-standards/, and use SBA’s Size Standards Tool.
You will need to know your North American Industry Classification System codes, known at NAICS codes. If you aren’t sure what codes apply to your business, the SBA has provided a link to a document filled with all of the NAICS codes. Once you put in your codes and enter your number of employees, the tool will let you know whether or not you qualify.
Which SBA Set-Asides Apply To You?
You might wonder why your business size matters in regards to contracting, and why you should even bother with the SBA. Government contracting is meant to help businesses of all sizes, but the government is particularly concerned with helping small businesses grow. Every federal agency is required to set aside a portion of its contracting budget just for qualifying small businesses. Many large companies that win huge government contracts also are required to use small businesses as subcontractors.
The SBA created several categories of small businesses, and these categories are known as “set-asides.” Your business may qualify for one or even several different set-asides, and in addition to simply qualifying as a general small business, other special set-asides include:
HUBZone Set-Asides: If your business is located in what has been designated a Historically-Underutilized Business Zone (HUBZone), it might qualify for this set-aside. As the name suggests, these are areas where small businesses historically have struggled and boosting the economy of these areas is important to the government.
Veteran-Owned Set-Asides: There are two veteran-related set-asides. One is a general set aside that applies to any business owned 51% or more by a veteran. There also is a set aside for Service-Disable Veteran-Owned Small Businesses, for those soldiers that were disabled in the line of duty.
Woman-Owned Set-Asides: If your business is owned 51% or more by a woman and also meets the small business requirement, you qualify for this set-aside. There also is a set aside for Economically-Disadvantaged Woman-Owned Businesses, and your net worth and income will factor into determining whether or not you qualify for this set-aside.
8(a) Business Set-Asides: In addition to helping women and veterans, the government also seeks to help any business owner that is part of a historically socially or economically disadvantaged group. The business must be at least 51% owned by a U.S. citizen (born or naturalized) that belongs to one of these groups, and there are restrictions regarding that person’s net worth and income.
Native American Set-Asides: There are a few set-asides for Native American-owned businesses, but Native Americans also might qualify for the 8(a) set-asides and all Indian reservations and other Native American lands are located in HUBZones, so there are several options for Native American business owners, and this category also includes Native Hawaiians. Basically, these types of set-asides were created to support businesses owned by any group of indigenous people.
It’s important to keep in mind that most of these set-asides are valid only for businesses that are majority-owned (51% or more) by a person that qualifies in one of these groups. The exception would be those businesses located in HUBZones.
Beyond Set-Asides: What Else Can SBA Do For You?
If you head to SBA.gov, you will see a tab at the top of the homepage that says Federal Contracting. If you click on that tab, you will find three sections – Contracting Guide, Contracting Assistance Programs, and Counseling & Help. Each of these sections can provide you with a wealth of information.
We definitely recommend that look at their contracting guide, as it has information about types of contracts, how to win bids, size standards and much more. Under the counseling section, you can find SBA representatives in your area that can answer questions, both about contracting and other small business concerns.
Getting Started With SBA & Government Contracting
While SBA is a valuable resource for small business owners, your first real step into government contracting will be to complete your System for Award Management (SAM) registration. Until you finish SAM registration, you will not be able to bid on government contracts.
While you can complete SAM registration on your own for free, it can take 10 to 15 hours (or more) to finish the application and the process can be confusing. If you start the process and become frustrated or just want to avoid the hassle, we can help.
We are a third-party registration service, and we handle hundreds of SAM registrations each year. We understand all of the complexities of SAM registration and will complete your application quickly and accurately. During the process, we also can help you decide which set-asides and NAICS codes apply to your business.
Once your SAM registration is approved, you will be eligible to start bidding on government contracts. Before you do start the bidding process, definitely take a look at the many SBA government contracting resources that are available. If you are ready to get started with government contracting, just call us or click on the New Registration tab on our homepage, fill out our quick form and a registration specialist will be in touch as soon as possible.