ANSWERS FOR WOMEN-OWNED SMALL BUSINESSES REGARDING CERTIFICATION AND
PROCUREMENT QUESTIONS

[WOMEN-OWNED SMALL BUSINESSES CERTIFICATION:]{.underline}

At this time there is no certification procedure *required* for
women-owned businesses for Federal procurement. However, you are
encouraged to self-certify your business as a woman-owned small business
(WOSB) in the Central Contracting Registry (CCR). The CCR is FREE and it
is used extensively by both federal agencies and large contractors that
are seeking small businesses. Do provide a *full profile* of your
business when you register. You can access the PRO-Net web site at
[www.ccr.gov](http://www.ccr.gov/).

There are several federal certification programs, three of which are
offered by the Small Business Administration (SBA) and one by the
Department of Transportation (DOT), that certify qualified women-owned
small businesses (WOSBs). These programs are discussed below.

In addition, there are private, national women's business organizations
that certify qualified women-owned businesses. One of these is the
Women's Business Enterprise National Council (WBENC), which offers a
self-certification program for women-owned businesses that helps to
validate the credibility of these firms and provide them with new
marketing opportunities. See [http://wbenc.org](http://wbenc.org/). The
WBENC may also be contacted at 202-872-5515. A second private
certification organization is the National Women's Business Owners
Corporation (NWBOC). NWBOC has launched a national certification program
for women-owned and controlled businesses as an alternative to the
multiple state and local certifications required by many public and
private-sector agencies or prime contractors. Over 100 private and
public agencies now accept NWBOC certification. See
[http://www.nwboc.org](http://www.nwboc.org/). The NWBOC may be called
at 561-881-7364.

[CERTIFICATION PROGRAMS OFFERED BY SBA:]{.underline}

There are several federal certification programs that can help
participants receive Federal contracts or subcontracts:

*The 8(a) Program* is the first and best known of SBA's contracting
related certification programs. This nine-year program provides business
development assistance to all its participants. Some of the participants
also receive federal contracts reserved for the 8(a) program through
sole source or limited competition awards. Each year there are millions
of dollars in 8(a) contracts awarded to program participants. The *main*
criteria for the 8(a) program are:

-   Applicants must be found to be socially disadvantaged.

> A number of minority ethnic groups are listed in the 8(a) regulations
> as groups *presumed to be* *socially disadvantaged*. A business owner
> who is not a member of one of these designated groups must provide
> information in her application that leads the Government reviewers to
> conclude that the applicant has suffered *chronic and substantial
> discrimination* *because the applicant* is in a certain category,
> (such as female or disabled, for example). (One or two examples
> usually don't constitute "chronic and substantial".) The successful
> applicant must also provide information that *demonstrates that* *the
> discrimination has had an effect* *on the owner's success in operating
> the applicant business*. Many women have suffered such discrimination
> when getting their education, during previous employment, or while
> operating their own businesses, especially businesses that are not
> viewed as traditional ones for women. When an applicant applies for
> the 8(a) program (or the SDB program, discussed below), the business
> opportunity specialist reviewing the application should be able to
> provide the applicant with additional guidelines about social
> disadvantage.

-   Economic disadvantage -- the socially disadvantaged owner or owners
    may not have an individual net worth or more that \$250,000 *after*
    subtracting both the equity in the primary residence and the equity
    in the applicant business.

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-   The owner or owners must own at least 51% of the business, and

-   Must control and manage the normal operations of business.

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-   The business must demonstrate a "potential for success", which
    normally means it has been in operation for at least 2 years, and
    demonstrate most of the characteristics associated with a successful
    business capable of performing government contracts.

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-   The owner(s) claiming social and economic disadvantage must be U.S.
    citizens.

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-   The owners must demonstrate good character, particularly as it
    relates to the ethical operation of the business.

> To apply for the 8(a) program, call your nearest SBA district office,
> and ask for an application. You may obtain this address through SBA's
> Answer Desk at 800- 827-5722. Almost all SBA district offices also
> have regularly scheduled presentations about applying to the 8(a)
> program. You can also review 8(a) program requirements and other
> information at the following web site:
> [**www.sba.gov/med**](http://www.sba.gov/med).

*The SDB PROGRAM* is a related SBA program, though it is a relatively
new one. Being certified in this three-year program is easier than in
8(a). This program is open to many startup businesses because there is
no requirement that a firm first establish a "potential for success."
There is no business development provided by SBA to participants in the
SDB program and there are no set-aside contracts.

However, there are some very real contracting benefits for SDB certified
firms. Most of the benefits go to the SDB firms in about 50 industries
in which minority small businesses have been historically
underrepresented in Government contracting. (The Dept. of Commerce
conducts reviews of contracting data to determine which industries to
include in this list.)

In full and open procurements, SDB firms, when bidding as primes, get a
*price evaluation adjustment.* Up to 10% is added to the price offered
by non-SDBs competing for the procurement in question. This has helped a
number of SDBs win contracts. Likewise, prime contractors who hire SDB
subcontractors that are in these industries get procurement evaluation
benefits that are stipulated in each Information For Bid (IFB) or
Request For Proposal (RFP).

SDB participants that are not in one of the designated industries still
benefit also. Prime contractors hiring these firms as subcontractors may
count those subcontract dollars toward their yearly SDB goals - and lots
of large Government primes are very interested in finding SDB subs to
help them meet their goals.

By the way, 8(a) participants are automatically included in the SDB
program -- and remain in the SDB program for 3 years from their last
annual review in the 8(a) program in which they were found still
eligible for the 8(a) program. Basically, the SDB criteria are:

-   Applicants must still be found to be *socially disadvantaged.*

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-   Applicants must also found to be *economically
    disadvantaged[.]{.underline}* However, the limit for individual net
    worth upon entering the program rises to *less than \$750,000 after*
    subtracting both the equity in the primary residence and the equity
    in the applicant business, (not the \$250,000 limit for 8(a) entry.)

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-   The disadvantaged owner or owners *must own at least 51% of the
    business.*

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-   The firm *must be managed and controlled by the owners.* (Unlike the
    8(a) program, the business may be operated on a part time basis if
    the owner controls and manages the business. This often happens with
    start-ups.)

-   For both programs, the *business must be small* as measured by SBA's
    size standards and *the applicant or applicants must be U.S.
    citizens.*

> To apply or ask questions, you may download an application and the
> several supporting documents you'll need to provide from the program
> web site at [**www.sba.gov/sdb**](http://www.sba.gov/sdb).

*The HUBZone Empowerment Contracting Program* is a place-based Federal
contracting program, which offers a three-year certification. This
relatively new program has been designed to bring contracting dollars
into areas of low income or high unemployment. The term HUBZones is
derived from "Historically Underutilized Business Zones". Only those
businesses that are in one of the many HUBZones around the country and
meet the other program criteria, such as having at least 35% of
employees of the applicant business also living in a HUBZone, qualify.
The primary program criteria are listed below:

-   Contracts may be awarded competitively to firms that are HUBZone
    qualified -- if there are at least two HUBZone qualified bidders or
    offerors for each requirement.

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-   Under full and open competition, the HUBZone small business concern
    will be given a *10% Price Evaluation Preference, if the price
    offered by the HUBZone concern is not more than 10% higher than the
    price offered by the lowest offeror*.

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-   Contracts may also be awarded sole source -- if there is only one
    qualified HUBZone small business concern. (There is a contract limit
    of \$5M for manufacturing and \$3M for services.)

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-   Certification is for a period of one year, but renewable annually,
    as long as the firm remains qualified for the program.

The excellent web site at
[**www.sba.gov/hubzone**](http://www.sba.gov/hubzone) has geographical
maps that are very specific. An interested applicant may easily
determine if her business is in a HUBZone, and whether the business
might be eligible for the program.

[THE CERTIFICATION PROGRAM OFFERED BY DOT:]{.underline}

*The Dept. of Transportation* certifies all eligible small women and
minority owned firms. *Women don't have to be determined to be socially
disadvantaged to be eligible.* There are a number of benefits from this
certification if the applicant firm can act as a prime or subcontractor
to DOT.

There are, however, approximately 900 certifying organizations for DOT.
The certification program is administered through individual state
organizations and other local organizations. Applicants may go to
[**http://OSDBUweb.dot.gov**](http://OSDBUweb.dot.gov/)[/business/mp/mktpkg8.html]{.underline}
for an alphabetical list by state of all the DOT certifying
organizations, or may phone 202/366-4754 for additional information.

There is a memorandum of understanding between DOT and SBA, which makes
it quicker for a firm certified by DOT to get an 8(a) or SDB
certification. However, DOT applicants who are not members of the groups
listed in 8(a) or SDB regulations that are presumed to be socially
disadvantaged must still establish individual social disadvantage. DOT
is still establishing its expedited certification process for firms
already certified in the 8(a) and/or SDB program.

[TECHNICAL, FINANCIAL AND MANAGEMENT ASSISTANCE:]{.underline}

*The SBA\'s Office of Women\'s Business Ownership* fosters the start-up
and growth of women-owned businesses. OWBO\'s programs provide business
training and technical assistance, access to credit and capital, and
access to marketing opportunities, including federal contracts. OWBO
reaches out to women business owners through a number of programs. Chief
among these is the Women\'s Business Center Program, which offers
long-term training, counseling, networking and mentoring to women
entrepreneurs, through a nationwide network of women's business centers.
There is at least one WBC in almost every state plus the District of
Columbia, the Virgin Islands, Puerto Rico and American Samoa. Each WBC
offers programs tailored to its individual community. WBCs target
socially and economically disadvantaged women, and some serve these
women exclusively. *While some WBCs have lending programs, the SBA does
not make grants to individual small businesses.*

The Online Women's Business Center at
*[http://]{.underline}*[*www.onlinewbc.gov*](http://www.onlinewbc.org/)
offers the best of the WBCs online, anywhere, 24 hours a day, 7 days a
week. Supported by the SBA's network of women's business centers, this
free, interactive web site provides business training and assistance,
market research, financial and information and resources, worldwide
networking, chats and bulletin boards, links to countless business
resources and related sites, mentoring and individual counseling. Once
you have entered the site, choose the center located nearest to you for
assistance. This information is available at
*[http://www.sba.gov/womeninbusiness/wbcs.html]{.underline}*.

The Women's Network for Entrepreneurial Training offers mentoring to
women entrepreneurs. This is provided through a nationwide network of
WNET roundtables, groups of entrepreneurs that meet regularly for
support, guidance and training. Formats vary, depending on the wants and
needs of each group. All offer both peer support and mentoring from
experienced, successful business experts.

In addition, each SBA district office has a women's business ownership
representative whose job it is to help women entrepreneurs access the
SBA's programs and services. They work closely with the Office of
Women's Business Ownership and the women's business centers. As needed,
they also refer clients to SBA resource partners and other local
resources.

*SBA\'s Small Business Development Centers*, nearly 1100 nationwide,
provide management and technical assistance, counseling and training to
current and prospective small business owners. The development centers
are a cooperative effort of the private sector, the educational
community, and federal, state, and local governments to help small
businesses start and grow. Also, the Department of Defense\'s (DOD)
Procurement Technical Assistance Cooperative Centers (PTAC) provide
assistance to business firms in marketing goods and /or services to the
Federal, state and local governments. You can link to DOD\'s PTAC\'s web
site by first going to <http://www.womenbiz.gov./>. Once you have
entered the site, the PTAC link is located under Your Contacts.

# OTHER SBA SMALL BUSINESS ASSISTANCE

*SIZE STANDARDS:* Size standards define the maximum size that a firm,
including all of its affiliates, may be to participate in federal
government programs that are reserved for small businesses. By law, a
small business concern must be independently owned and not dominant in
its field of operation. It also has to meet certain numerical size
standards, and they vary from industry to industry to reflect the
differences among them. Historically, SBA had established size standards
for businesses as described in the Standard Industrial Classification
(SIC) system. On October 1, 2000, SBA replaced its SIC table of small
business size standards with a new one. The new table of size standards
is based on industries as they are described in the North American
Industry Classification System (NAICS).

SBA's [*Office of Size Standards*](http://www.sba.gov/size/) develops
and recommends small business size standards to the Administrator of
SBA. To determine if you are a small business, you need to know the
NAICS code that best describes your business. If you plan to provide
goods and services to the Federal Government, you must also know the
code that best describes the type of contract into which you plan to
enter. You can find the [*table of size
standards*](http://www.sba.gov/size/NAICS-matched-with-size-stds-umbrella.htm)
(<http://www.sba.gov/size/NAICS-matched-with-size-stds-umbrella.htm>) on
SBA's web site. If you do not know what NAICS code you should use, there
are directions there for you to go to the *[Bureau of
Census](http://www.census.gov/epcd/www/naics.html)* web site, and then
return to the table with your code
(http://www.census.gov/epcd/www/naics.html).

[DOING BUSINESS WITH THE GOVERNMENT:]{.underline}

You can find information about doing business with the government by

going to the SBA\'s web site at <http://www.womenbiz.gov/>. Once you
have entered

this web site, choose any category under "Find Biz Opps" to link you to
government contracting opportunities. Several agencies, such as DOD,
require that potential contractors register their firms in their own
contractor databases. You may also want to contact
<http://www.FedCenter.com/>. This web site is exclusively for government
buyers. You can contact the site and get information about registering
your business.

To reach the Federal *Offices of Small and Disadvantaged Business
Utilization (OSDBUs)*, which provide small businesses with information
and assistance regarding procurement in their respective agencies, go to
[http://]{.underline}[**www.womenbiz.gov/page-htm**](http://www.womenbiz.gov/page-htm).
Then click on "OSDBUs". Some agencies also have mentor-protégé programs,
providing some small firms formalized programs through which they may
find mentoring firms to assist with their development. The Department of
Defense, Energy, NASA, and EPA are among these agencies. OSDBU personnel
in participating agencies can give additional information.

[FINANCING:]{.underline}

The SBA participates in short and long-term loans to eligible,
credit-worthy start-up and existing small businesses that cannot obtain
financing on reasonable terms through normal lending channels. The SBA
provides this financial assistance through its participating lenders in
the form of loan guaranties, not direct loans. *SBA does not provide
grants for business start-ups or expansion*s. Additional information
about SBA loan guarantees and resources for loans is provided through
the *Economic Development* section the local SBA district offices. *Call
SBA's Answer Desk at 800-827-5722* for the nearest local district office
number. More information about the SBA's various loan programs is also
offered at following sites:

Pre qualification Loan: <http://www.sba.gov/financing/frprequal.html>

7(a) Loan: <http://www.sba.gov/financing/fr7aloan.html>

504 Loan: <http://www.sba.gov/financing/frcdc504.html>

Microloan Program: <http://www.sba.gov/financing/frmicro.html>

Low Doc: <http://www.sba.gov/financing/frlowdoc.html>

Community Express: <http://www.sba.gov/financing/frcomexp.html>

...owp/share/Stock Answers draft by CAWBO (1-30-01)