Business Certifications Training

Agenda Definition and Benefits Qualifications Federal Level Certifications State & Local Level Certifications Supporting Documentation Application Submittal Process Order Processing Frequent Asked Questions Conclusion

Definition Certification = review process designed to ensure that a small business is actually owned, controlled, and operated by the applicants. Most certifications are granted for Minority or Women owned businesses, Small Disadvantaged Businesses, and Underutilized businesses. Certification agencies implement the processes for government and private sector entities and ensure that only firms that meet the eligibility criteria of the individual programs are properly certified.

Benefits Can help gain access to government contracts Levels the playing field to compete and win “Set aside” contracts designated to help small disadvantaged business Listed in minority databases/directories Access to mentoring, education, and capacity development programs Local and statewide government agencies are mandated to award certain percentages of contracts

Certification Qualification Something they have in common ! 8a WOSB / EDWOSB HUB Zone Veteran Registration WBENC NMSDC MBE / WBE DBE 51%

8a Business Development Program SBA – Small Business Administration Program Designed to help small disadvantaged businesses compete through business development Through sole-source contracts, businesses are given an opportunity t enter the government-contracting arena, and gain experience to compete in the full an open market Nine (9) years program: Four (4) years developmental stage Five (5) years transition stage

SBA 8a Small business owned and controlled by one or more socially and economically disadvantaged individuals 51% owned and controlled Minority groups are presumed to qualify Personal Net Worth < $250,000 Meet applicable size standards for small business in their industry 2 years of operations w/3 completed contracts or waiver

8a Waiver Requirements Substantial business experience Technical expertise to carry out business development objectives (licenses and certifications) Adequate capital to sustain operations and carry out the business plan Record of successful performance on contracts from government and nongovernment sources Ability to timely obtain personnel, facilities and equipment to perform contracts

Socially Disadvantaged Member of a racial/ethnic minority group The 8 (a) program has the following social groups designated as socially disadvantaged: Black African Americans Hispanic Americans Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians Asian Pacific Americans Subcontinent Asian Americans

Economically Disadvantaged Personal Net Worth Limit is $250,000 or less Includes the following accounts: Life Insurance Stocks Bonds Asian Trusts Subcontinent Asian Americans Total assets must not exceed $4 million Excludes IRA accounts and the value of primary home

SBA Form - 413

Ineligibility Issues Businesses ineligible for certification include: Franchises Nonprofit Organizations Brokers & Packagers Firms owned by other disadvantaged firms

Ineligibility Issues As defined by the SBA, demonstrations of “lack of character” may include: Past Criminal Records Violations of SBA Regulations Debarment or Suspension Falsified Information

Overview of Women-Owned Small Business Program The Women-Owned Small Business (WOSB) program authorizes contracting officers to set aside certain federal contracts for eligible Companies. Requires previous approval by a recognized third party agency We use the WBENC SBA is responsible for implementing and administering the program and the Federal Acquisition Regulatory Council is responsible for implementing SBA’s program regulations in the FAR

Eligibility Requirements for WOSBs Meet small business size standard for primary NAICS code and contract At least 51% unconditionally and directly owned by women who are U.S. citizens* The woman must manage the day-to-day operations The woman must make the long-term decisions for the business A woman must hold highest officer position The woman must work at the business full-time during normal working hours No minimum amount of time the business has been operational

WBENC Women’s Business Enterprise National Council Comprised of 14 regional partner organizations with stringent standards and procedures in their certification programs National recognition by thousands of major U.S. corporations & federal, state and local government entities Female owner(s) must be a US Citizen or legal resident alien Access to mentoring, education, and capacity development

NMSDC National Minority Supplier Diversity Council Comprised of 24 regional affiliates organizations with stringent standards and procedures in their certification programs committed to helping organizations solve the growing need for supplier diversity Ownership must be at least 51% by minority U.S. Citizens Access to mentoring, education, and capacity development

Veteran Registration For Veterans Administration (VA) set aside contracts Serves as a veteran registry for other agencies Veteran owner has 51% control, manages company on strategic policy and on a day-t0-day basis Veteran holds the highest officer position and is the highest compensated employee Veteran has managerial experience Submitted electronically & must upload docs

State & Local Certifying Agencies Exist in the following levels State County City Local Types: MBE WBE M/WBE SBE

Minority Owned Business (MBE) Regardless of size Owned and controlled by minority group members US Citizens (Asian, Black, Hispanic, Native American) –some states will allow resident alien At least 25% minimum blood as minority Certification at local or regional level

How to Prove Minority Status Birth Certificates Surnames Driver’s License Passport Tribal Card

Women Owned Business (WBE) 51% or more is women-owned, managed, and controlled Business open for at least six months Owner must be a US Citizen but some states will allow resident aliens Show contribution capital and/or expertise by the women owner is real Must be able to perform in the area of specialty without reliance or finances of another firm that is not owned by a woman

Disadvantaged Business Enterprise (DBE) Owned & controlled by one of more socially & economically disadvantaged person (minority or woman) Economically disadvantaged (< $1.3 million PNW) Minimum 51% ownership, control, and expertise of the individual(s) Control of the daily management and operations Certification at the local and regional level State run and federally funded (administered by DOT)

Supporting Documents Small business owners will be asked to provide a wide range of materials including: Business & Personal Tax Returns Licenses & Permits Profit & Loss Statements Business Insurance Legal Formation Documents

Submittal Process ID correct online or paper applications & complete forms Assemble supporting documentation Submit to certifying agency (mainly online) Site visit (depending type of certification) Provide additional information/documentation as required Approval or Denial Appeal if issues leading to denial can be refuted/mitigated Renewal

Order Process Steps Order is placed, payment made, and terms signed Client completes and submit initial questionnaire Client register in SAM if they haven’t already - Fed Client completes financial questionnaire(s) Phone interview to review application and supporting documentation (if binder option is purchased) Service consultant completes and send to client the application Client reviews, signs, and submit documents to certifying agencies (paper or electronically)

Terms of Service - Highlights Limited to application preparation Thorough documents checklist provided No approval guarantee Not responsible for disqualification due to incomplete or wrong information provided Application fees (if any) not included Binder preparation option (addtl fee) Includes review of supporting documents Organized document binder with checklist Letter review & response (addtl fee – 2hr blocks)

Conclusion Business certification levels the playing field to compete and win contracts “Set aside” contracts are designated to help small disadvantaged business The process can be grueling BizCentral can help in providing and submitting the right information