8(a) Business Development Program
This program is in place for those businesses whose owner of 51% or more can prove with a preponderance of evidence they are socially and economically disadvantaged. Social Disadvantage is automatically awarded to those that are African American, Asian American Pacific, Asian American Subcontinent, Hispanic American and Native American. Economic Disadvantage has a two part eligibility – 1) the individual claiming disadvantaged status must prove that their individual net worth of less than $750,000 (removing interest in primary residence and/or business) AND a written narrative of economic disadvantage is submitted. This written narrative can be both personal & professional and span their entire lifetime. This is a 9 year program and may only be awarded once. A secondary certification will be awarded as part of the 8(a) status which is Small Disadvantaged Business (SDB).
DBE: Disadvantage Business Enterprise
Specific to transportation agencies – blends minority & women into one group called disadvantaged.
United States Department of Transportation (DOT) originally enacted Disadvantaged Business Enterprise (DBE) certification in 1987. In simple terms they declared that any agency who receives their federal transportation funds at a local level will be a certifying body. Eligibility for DBE certification is based being a small business as defined by the US SBA, being socially and economically disadvantaged. Social is automatic for six designated groups; Native American, African American, Hispanic American, Asian Pacific American and Asian Subcontinent American and women. Other minorities may qualify with social narrative submitted. Economically the individual claiming social disadvantage must have a net worth of less than $1,320,000 (excluding primary residence and/or business interest). A business must receive the certification through ONE agency locally and then that certification will take them nationally.
This program is based on the primary headquarter location and number of employees. By Census Tract there are identified HUBZones located throughout the country and your primary headquarters must reside in an identified HUBZone tract AND 35% of your workforce must reside in an identified HUBZone tract (not necessarily the same location as the primary headquarters). This status may be renewed every three years as long as the location is in an identified HUBZone tract.
MBE: Minority Business Enterprise
Eligibility: African (Black) American, Asian (Subcontinent or Pacific) Native American, Hispanic American.
PBE or BEPD: Physically Disabled Business Enterprise
SBD: Small Disadvantaged Business
Self-designation in the federal vendor system; SAM.
Eligibility: African (Black) American, Asian (Subcontinent or Pacific) Native American, Hispanic American
VBE: Veteran Business Enterprise
SDVBE: Service-Disabled Veteran Business Enterprise
VOSB: Veteran Owned Small Business
SDVOSB: Service-Disabled Veteran Owned Small Business
The VA has unique buying authority and they have the “VET FIRST” Procurement Rule. The rule identifies that formal certification must be received in order to contract with their agency. There are two possible certifications VOSB and SDVOSB for small business only. Eligibility would be 51% or more managed, owned and controlled by one or more veterans or service-disabled veterans. Formal application must be submitted to be approved and certified. I
WBE: Woman Business Enterprise
WOSB: Woman Owned Small Business
EDWOSB: Economically Disadvantaged Woman Owned Small Business.
The federal WOSB program is based on qualifying NAICS, 51% or more ownership by a woman or women and for the EDWOSB an additional requirement of individual net worth of less than $750,000 (excluding primary residence and/or business interest). There are approximately 83 categories that qualify either in the Women Owned Small Business Program (WOSB) or the Economically Disadvantaged Women Owned Small Business Program (EDWOSB).