Workshop-2

2. What We Will Cover
1. Small Business Goals
2. Service-Disabled Veteran-Owned Small Business
Program
3. Women-Owned Small Business (WOSB) and
Economically Disadvantaged Women-Owned Small
Business (EDWOSB) Programs
4. HUBZone (Historically Underutilized Business Zone)
Program
5. 8(a) Business Development (BD) Program

3. Why Would You Want the Federal Government
as Your Customer
• U.S. government is the world’s largest buyer
of goods and services.
• Government purchases total over $500
billion a year.
• Federal agencies are required to establish
small business contracting goals.
• Increased thresholds implemented for by
DOD for Simplified Acquisition Threshold
$250K and Micropurchases $10K per the
NDA 2018 (exceptions apply)
3

4. Small Business Goals
• Government-wide goals
• 23% to small businesses (total expenditures)
• 5% for women-owned small businesses
• 5% for small disadvantaged businesses
• 3% for service-disabled veterans
• 3% for HUBZone certified small businesses
• SBA negotiates specific goal accomplishments with
each Federal agency

5. Service Disabled Veteran Small Business
Program
On May 5, 2004, SBA issued regulations in the
Federal Register as an Interim Final Rule
implementing Section 308 of the Veterans
Benefits Act of 2003 (Public Law 108-183).
Section 308 of PL 108-183, amended the Small
Business Act to establish a procurement
program for small business concerns (SBCs)
owned and controlled by service-disabled
veterans.

6. Service-Disabled Veteran-Owned Small Business
Concern Eligibility - General
• The Service Disabled Veteran (SDV) must have a service-
connected disability that has been determined by the
Department of Veterans Affairs
• The SDVO SBC must be small under the North American
Industry Classification System (NAICS) code assigned to
the procurement
• The SDV must unconditionally own 51% of the SDVO SBC
• The SDV must control the management and daily
operations of the SDVO SBC
• The SDV must hold the highest officer position in the
SDVOSBC

7. Who certifies a Service Disabled Veteran Owned Small
Business Concern (SDVO SBC)?
A SDVO SBC must represent (self-certify) to the
contracting officer that it is a service-disabled
veteran-owned small business concern.
Note: Exception for Veterans Administration
•https://www.vip.vetbiz.va.gov/

8. Who does SBA consider to control a Small Disabled
Veteran Owned Small Business Concern (SDVO SBC)?
Generally, to be an eligible SDVO SBC, the
management and daily business operations of the
concern must be controlled by one or more
service-disabled veterans (or in the case of a
veteran with permanent and severe disability, the
spouse or permanent caregiver of such veteran).
Control by one or more service-disabled veterans means that
both the long-term decisions making and the day-to-day
management and administration of the business operations must
be conducted by one or more service-disabled veterans (or in the
case of a veteran with permanent and severe disability, the
spouse or permanent caregiver of such veteran).

9. Types of Contract Assistance Available to SDVO
SBCs
Set-aside awards (competitive and sole source)
•For sole source, the anticipated award price
of the contract, including options, will not
exceed:
•(1) $7MM for a requirement within the
NAICS codes for manufacturing, or
•(2) $4MM for a requirement within all other
NAICS codes
•Subcontracting

10. SBA Certifications
Go to https://certify.sba.gov/am-i-eligible
Answer the questions to find out if your firm may meet
criteria to participate in one of the 3 SBA Certification
Programs.
Notes: Firms owned by Indian Tribes, Alaska Native
Corporations, Native Hawaiian Organizations, Community
Development Corporations, and small agricultural cooperatives
may have different criteria for acceptance into SBA’s small
business programs. Refer to SBA.gov for more information.
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11. Women-Owned Small Business Federal Contract
Program
On October 7, 2010, the U.S. Small Business
Administration published a final rule effective February 4,
2011, aimed at expanding federal contracting
opportunities for women-owned small businesses
(WOSBs). The Women-Owned Small Business (WOSB)
Federal Contract program authorizes contracting officers
to set aside certain federal contracts for eligible:
• Women-owned small businesses (WOSBs) or
• Economically disadvantaged women-owned small
businesses (EDWOSBs)
See www.sba.gov/wosb for current list of NAICS Codes

12. 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
*We do not consider community property laws when looking at ownership.

13. Eligibility Requirements for EDWOSBs
Same Requirements as WOSBs plus:
Personal net worth (assets minus liabilities) is less than
$750,000 excluding:
•Ownership in business and primary personal residence
•Income reinvested or used to pay taxes of business
•Funds reinvested in IRA or other retirement account*
•Transferred assets within two years if to or on behalf of immediate family
member for select purposes**
Adjusted gross income average over three years is $350,000 or
less excluding:
•Income reinvested or used to pay taxes of business
Fair market value of assets is $6 million or less excluding:
•Funds reinvested in IRA or other official retirement account
*Must be IRA or other official retirement account that is unavailable until retirement age without significant penalty
** Select purposes are for that individual’s education, medical expenses or other essential support or to family member in
recognition of special event

14. Eligibility Requirements for EDWOSBs cont.
Additional consideration:
SBA will look at a spouse’s finances if the
spouse has a role in the WOSB/EDWOSB, has
lent money to or provided financial support
(including credit or guarantee of loan) to the
business. SBA may also look at spouse’s
finances if both spouses are in same or similar
line of business and businesses share names,
websites, equipment and employees.

15. WOSB Program Certification
There are two ways to certify for the WOSB program:
• Self certification with supporting documents (subject to
change) certify.sba.gov, or
• Third Party Certification

16. Types of Contract Assistance Available to
WOSB/EDWOSB
•Set-aside awards (competitive and sole source) in
those industries which SBA has determined that
WOSBs are underrepresented or substantially
underrepresented
• For sole source, the anticipated award price of the
contract, including options, will not exceed:
• (1) $7MM for a requirement within the NAICS codes for
manufacturing, or
• (2) $4MM for a requirement within all other NAICS codes

17. 5 Steps to participate in the WOSB program
(third party or self-certification)
1.Read the WOSB Federal Contract program regulations in the Federal Register and the WOSB
Compliance Guide
2.Register in the System for Award Management (SAM)
3.Log onto the SBA One Contracting Portal at certify.sba.gov
4.Upload all required documents (By statute, documents must be submitted to the CO.)
5.Represent your status in SAM to self-certify or
• Third-party certification through one of four organizations approved by the SBA to
provide third-party certification. Contact them to find out about their certification process.
They are:
• El Paso Hispanic Chamber of Commerce
• National Women Business Owners Corporation
• US Women’s Chamber of Commerce
• Women’s Business Enterprise National Council
You’ll need to provide proof of your third-party certification through certify.SBA.gov. Read
the instructions carefully to make sure you provide all the necessary information.

18. HUBZone Program
The purpose of the HUBZone (Historically Underutilized
Business Zone) program is to provide federal contracting
assistance for qualified small business concerns (SBC)
located in historically underutilized business zones in an
effort to increase employment opportunities, investment,
and economic development in such areas.
For questions, e-mail hubzone@sba.gov
HUBZone offers eligibility assistance on Tuesdays and
Thursdays from 1-2 p.m. CST
Toll free number: 1-888-858-2144 access code
5540055# (changes periodically – check Website for
new SKYPE)
Go to www.sba.gov/hubzone for more information

19. How does a firm qualify for this program?
•Must be a small business by SBA size standards
•Must be directly or indirectly owned and controlled
at least 51% by U.S. citizens, a Community
Development Corporation, an agricultural
cooperative, an Indian tribe, an Alaska Native
Corporation, or a Native Hawaiian Organization.
•Its principal office must be located within a
HUBZone
•At least 35% of employees must reside in a
HUBZone

20. Principal Office Must be in a HUBZone
• Principal Office: Location where the greatest number
of the concern’s employees at any one location
actually perform their work
• excludes employees who perform the majority of their
work at job-site locations to fulfill specific contract
obligations
• Concerns may have more than one location/office
• Principal office requirement must still be met (HUBZone
location must have greatest number of employees)
• If two locations have the same number of employees,
both offices must be located in a HUBZone.

21. Who is an employee?
Employee means all individuals employed on a full-time, part-
time, or other basis, so long as that individual works a minimum
of 40 hours per month. This includes employees obtained from a
temporary employee agency, leasing concern, or through a
union agreement or co-employed pursuant to a professional
employer organization agreement.
Volunteers ( i.e., individuals who receive deferred compensation
or no compensation, including no in-kind compensation, for work
performed) are not considered employees. However, if an
individual has an ownership interest in and works for the
HUBZone SBC a minimum of 40 hours per month, that owner is
considered an employee regardless of whether or not the
individual receives compensation.

22. HUBZone Contracting Program Benefits
• HUBZone set-aside contracts
• Competitive and Sole Source ($7MM for
manufacturing and $4MM for all others)
• Full and open competition
• Price evaluation preference to qualified HUBZone
small business concerns
• Offer of HUBZone small business will be
considered lower than offer of a non-HUBZone
business (must be a large business) provided
that the offer of the HUBZone concern is not
more than 10% higher
• Potential for increased subcontracting opportunities

23. When may a concern apply for HUBZone
certification?
A concern may apply to SBA and submit the required
information whenever it can represent that it meets the
eligibility requirements, except:
A concern that SBA has declined or decertified may
seek certification after ninety (90) calendar days from
the date of decline or decertification if it believes that it
has overcome all reasons for decline or decertification
through changed circumstances and is currently
eligible.

24. For More Information and How to Apply
• Go to www.sba.gov/hubzone
• Click on “See the HUBZone Map” and input the address.
• Before you can participate in the HUBZone program, you
must be certified by the SBA. Take these steps to get
HUBZone certified.
• Make sure you have an active SAM.gov account.
• Go to https://certify.sba.gov then click on “Get Started” in
order to create your certify.sba.gov login
• Check your email for time-sensitive instructions to
electronically verify your application within 10 business days
(possibly junk mail).
• Submit any requested supporting documentation within 10
business days.
Review information and “HUBZone Primer” presentation.
For assistance, e-mail HUBZone@sba.gov

25. Review Process
SBA District Offices do not review applications.
• All applications are reviewed by the HUBZone Program
Office.
• Following review of the electronic submission, the
HUBZone Program Office will request supporting
hardcopy documentation (check junk mail e-mail folder).
• The Director of the HUBZone (D/HUB) program or
designee is authorized to approve or decline certifications.
The decision of the D/HUB or designee is the final agency
decision.

26. What is a qualified HUBZone Small Business Concern
(SBC's) ongoing obligations to SBA?
A qualified HUBZone SBC must immediately
notify SBA of any material change that could affect
its eligibility.
Material change includes, but is not limited to, a
change in the ownership, business structure, or
principal office of the concern, or a failure to meet
the 35% HUBZone residency requirement . The
notification must be in writing, and must be sent or
delivered to the D/HUB to comply with this
requirement.

27. 8(a) Business Development (BD) Program
The purpose of the 8(a)BD program is to
assist eligible small disadvantaged business
concerns compete in the American
economy through business development.
However, please note that “Admission into
the 8(a) BD program does not guarantee
that a Participant will receive 8(a) contracts.”

28. Accomplishing the business development
objective for 8(a) firms
• SBA monitors and measures the progress of participants
through annual reviews, business planning and
systematic evaluations.
• Participants may receive specialized business training,
counseling, and marketing assistance.
• Participants (and other small businesses) have access to
SBA guaranteed loans and surety bond assistance.

29. What are the basic requirements a concern must meet for the 8(a)BD
program?
Generally, a concern meets the basic requirements for admission to the
8(a)BD program if it is:
• a small business;
• unconditionally owned and controlled by one or more socially and
economically disadvantaged individuals who are of good character
and citizens of the United States, and
• which demonstrate potential for success, e.g., operating revenues in
its primary industry classification for two full years immediately prior to
the date of 8(a)BD application unless a waiver is granted.
Small Business concerns owned and controlled by entities including
Alaska Native Corporations (ANC), Indian Tribes, Native Hawaiian
Organizations (NHO), and Community Development Corporations (CDC)
may also be eligible for participation in the 8(a)BD program.
Go to https://certify.sba.gov/am-i-eligible to get a preliminary qualification assessment
Note: Firm must maintain size, economic disadvantage and social disadvantage eligibility throughout the 9 year
term of participation.
• Go to www.sba.gov/8a for more information
• Go to www.fbo.gov (Federal Business Opportunities) for Federal procurement opportunities

30. Social Disadvantage
Socially disadvantaged individuals are those who have been
subjected to racial or ethnic prejudice or cultural bias within
American society because of their identities as members of
groups and without regard to their individual qualities.

31. Social Disadvantage
Individuals are presumed to be socially
disadvantaged if they are a U. S. citizen and a
member of one of the following groups:
• Black Americans
• Asian Pacific Americans
• Subcontinent Asian Americans (persons with origins from India,
Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or
Nepal)
• Hispanic Americans (includes individuals of Spanish or Portuguese
descent)
• Native Americans (American Indians, Eskimos, Aleuts, and Native
Hawaiians)
Title 13 Part 124 of the Code of Federal Regulations (CFR).

32. Social Disadvantage – cont.
Persons not members of designated groups
may claim social disadvantage based on a
“preponderance of the evidence.”
Preponderance of the evidence is evidence of
a quality and quantity which leads the decision-
maker to objectively conclude that the
existence or truth of the facts asserted is more
probable than not.

33. What Evidence Must an Individual Not a Member of a
Designated Group Provide?
At least one objective distinguishing feature
that has contributed to social disadvantage,
such as:
• race
• ethnic origin
• gender
• physical handicap
• long-term residence in an environment isolated
from the mainstream of American society
• or, other similar causes not common to individuals
who are not socially disadvantaged

34. Economic Disadvantage
Economically disadvantaged individuals are
socially disadvantaged individuals whose ability
to compete in the free enterprise system has
been impaired due to diminished capital and
credit opportunities as compared to others in
the same or similar line of business who are not
socially disadvantaged.

35. Economic Disadvantage - Factors
Considered (General)
•Submission of financial information
•Individual’s personal net worth must be less than
$250,000 for initial 8(a) eligibility after excluding:
• The individual’s ownership interest in the applicant firm
(business equity)
• Equity in the primary personal residence
• Funds invested in an individual retirement account or
other official retirement account that are unavailable to
an individual until retirement age without a significant
penalty

36. Economic Disadvantage - Factors Considered
(General) (cont’d)
•If an individual’s adjusted gross income averaged
over the three years preceding submission of the
8(a) application exceeds $250,000, SBA will
presume the individual is not economically
disadvantaged.
•An individual will generally not be considered
economically disadvantaged if the fair market
value of all his/her assets exceeds $4 million
(includes primary residence and value of the
applicant).
•Spouse’s financial information
•Assets transferred within 2 years of application
•Income received from an S-Corp, LLC, or

37. Ownership
•At least 51% of applicant firm must be directly
and unconditionally owned by a socially and
economically disadvantaged individual(s).
•Corporate, LLC, Partnership documents must
reflect unconditional ownership.
• Stock option plans for non-disadvantaged individuals will be viewed as if
they have been exercised.

38. Ownership (cont’d)
• Ownership by Living Trusts - must meet following
conditions:
• Trust is revocable
• Grantor of the trust is the disadvantaged individual
• Trustee of the trust is the disadvantaged individual
• Sole current beneficiary of the trust is the disadvantaged
individual

39. Control and Management
• SBA’s view of control
• Control is not the same as ownership
• Control and ownership may reside in the same person
• Control includes both strategic policy setting and the day-to-day
management administration of business operations

40. What constitutes control?
Control includes but is not limited to the
disadvantaged individual:
• Holding the position of President or Chief Executive,
Managing Partner, or LLC Managing Member
• Being the highest compensated
• Having the ability to hire and fire
• Setting policies
• Having the ability to commit firm to contracts
• Having the ability to control budget and financial
disbursement
• Devoting full-time to the business

41. Non-Disadvantaged Individuals
• May be involved in the ownership and management
of an applicant firm
• However, no non-disadvantaged individual or family
member may:
• Exercise actual control or have the power to control the
applicant firm
• Be a former employer or principal of a former employer
• Receive compensation from the applicant, in any form,
that exceeds the compensation to be received by the
highest ranking officer

42. Potential for Success
The applicant must be in business in its primary industry
classification for at least two full years immediately prior to the
date of its 8(a)BD application unless a waiver is granted, e.g.,
because a firm has had operating revenues in its primary industry
classification for two full years immediately prior to the date of
8(a)BD application.
• Income tax returns for the two previous tax years must show
operating revenue in the primary industry in which the
applicant is seeking 8(a)BD certification.
• SBA may waive the two years in business if each of the
following 5 conditions are met:
• Business Management Experience
• Technical Experience
• Adequate Capital
• Record of successful performance on contracts from sources in its
primary industry
• Personnel, Facilities, Equipment and other requirements

43. • Good character
• One-time eligibility
• Brokers - A broker is a concern that adds no
material value to an item being supplied to
procuring activity or which does not take
ownership or possession of or handle the item
being procured with its own equipment or
facilities.
•Federal financial obligations
Other Eligibility Requirements

44. 8(a) Business Development (BD) Program Benefits
• Assigned to work with SBA
• Specialized training, counseling
• Access to contracts set aside by Federal agencies
for 8(a)BD program
• Sole source or competitive
• 8(a) Mentor-Protégé Agreement (MPA) and/or
8(a)Joint Venture Agreement (JVA), if firm desires
• Concurrent Small Disadvantaged Business (SDB)
certification
• Term of participation: 9 years

45. For More Information and How to Apply
Go to www.sba.gov/8a
•Under the “Federal Contracting” tab, click on
“8(a) Business Development.”
•Review information and take the on-line
training and self-evaluation course.
•Access the electronic application at
certify.sba.gov and follow instructions. For
assistance with e-mail the applicable
helpdesk.

46. Review Process
• SBA District Offices do not review applications.
• All applications are sent to the appropriate Division of
Program Certification and Eligibility (DPCE) office for
review. If a firm is headquartered in Hawaii or Guam, the
DPCE office of review is in San Francisco.
• If incomplete, DPCE will request additional information
and/or comments.
• If one is unable/chooses not to submit additional
information or becomes aware of a possible decline, one
can opt to withdraw its application so that a decline does
not occur for that application submittal.
• Once DPCE makes a determination to approve or decline
the application, it is sent to the Associate Administrator
(AA) for the final determination.

47. Review Process (cont’d)
• If declined, applicant advised of right to request
reconsideration (DPCE) within 45 days of date of decline.
• An applicant may appeal a denial of program admission
to SBA’s Office of Hearings and Appeals (OHA), if it is
based solely on a negative finding of social disadvantage,
economic disadvantage, ownership, control, or any
combination of these four criteria. A denial decision that
is based at least in part on the failure to meet any other
eligibility criterion is not appealable and is the final
decision of SBA.
• A concern which has been declined for 8(a)BD program
admission may submit a new application for admission to
the program 12 months after the date of the final Agency
decision to decline.

48. Additional Information
• SBA – www.sba.gov
• SBA Alabama District Office - www.sba.gov/al
2 20th Street North, Suite 325
Birmingham, AL 35203
(205) 290-7101
(205) 731-0170 (Fax)
JaWanda H. Jones,
Business Opportunity Specialist
(205) 290-7643
Jawanda.jones@sba.gov

49. Questions?