The US federal and state governments have identified sectors of business that are by definition, disadvantaged. The disadvantaged business sectors are generally defined by geographic economies or by ownership gender and/or race. Both federal and state governments foster an environment where small firms can overcome barriers in all areas of business including the arena of government contracting.

Small firms interested in doing business with federal and/or state governments should review the terms and conditions of the following special interest programs to identify qualifying criteria either for themselves or their immediate subcontractors.

Federal Programs:

1.    Small Disadvantaged Business (SDB) Certification and Eligibility

These programs are based on a business owners’ gender and/or race. SBA certifies SDBs to make them eligible for special bidding benefits. Evaluation credits available to prime contractors boost subcontracting opportunities for SDBs.  Companies that qualify for the 8(a) automatically qualify for the SBD program.  To determine if your company qualifies for the program visit http://www.sba.gov/sdb/indexaboutsdb.html, or contact the local PTAC.

      2.  Women-Owned Small Business (WOSB)

This program is based on a business owners’ gender.  Presently, no federal procurement certification process for Women-Owned Businesses exists.  However, women are encouraged to self-certify their companies as Women-Owned Small Businesses (WOSB) in the SBA’s Pro-Net database. Pro-Net is SBA's online Procurement Marketing & Access Network. The free service is used extensively by both federal agencies and large contractors that are seeking small businesses. You can access the PRO-Net web site at http://pro-net.sba.gov. Contact the local PTAC for assistance in completing this registration.

      3.    8(a) Program

This program is based on a business’ owners’ gender and/or race. To qualify for the 8(a) program, a small business must be owned and controlled by a socially and economically disadvantaged individual. Under the Small Business Act, certain presumed groups include African Americans, Hispanic Americans, Asian Pacific Americans, Native Americans, and Subcontinent Asian Americans. Other individuals can be admitted to the program if they show through a "preponderance of the evidence" that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream of American society. In order to meet the economic disadvantage test, all individuals must have a net worth of less than $250,000, excluding the value of the business and personnel residence.  To learn more about this program visit www.sba.gov/businessop/programs/8a.html, or contact the local PTAC.

      4.    Historically Underutilized Business Zone (HUBZone)

This program is based on a company’s geographic location.  A business with one location should determine if they are within a SBA-designated HUBZone area. A business with multiple locations should determine if their “primary cost center” is within a SBA designated HUBZone area. The HUBZone Empowerment Contracting Program is intended to stimulate economic development and creates jobs in urban and rural communities by providing federal contracting preferences to small businesses. These preferences go to small businesses that obtain certification. To determine if your business is located in a HUBZone and to complete the on-line certification application, visit https://eweb1.sba.gov/hubzone/internet/, or contact the local PTAC.

      5.    Veteran-Owned Small Business (VOSB)

This program is based on the ownership (military status) of a company.  Currently there are no set aside programs in place for Veteran Owned Small Business, However they are parts of the SBA purchasing goals that all Federal programs must abide by.  A Veteran-Owned Small Business concern is a small business owned by one or more veterans possessing at least 51% of the business.  In the case of publicly owned businesses, veterans must control the management and daily business operations. National Guard soldiers and reservists, who were activated to federal duty, are eligible for this program. To learn more about this program visit www.sba.gov/vets/ or www.vetbiz.gov or contact the local PTAC.

      6.    Service-Disabled Veteran Owned Small Business (SDVOSB)

This program is based on ownership (military status) of a company. Recent legislation has elevated the status of this designation and has made it possible for a government agency to sole source a contract with a qualified SDVOSB. A Veteran-Owned Small Business concern is a small business owned by one or more service-disabled veterans possessing at least 51% of the business. In the case of publicly owned businesses, service-disabled veterans must control the management and daily business operations. In the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such is eligible to participate. To learn more about this program and the new developments in legislation visit www.vetbiz.gov or www.va.gov/partners/, or contact the local PTAC.

PA Commonwealth Programs:

      1.    PA Socially and Economically Disadvantaged Business (SERB)

This program is based on geography. Eligible small businesses must be located in designated Enterprise Business Zones. The purpose of the SERB Program is to promote the use of small and emerging businesses by giving them opportunities to participate in state contracting activities. Many of the companies that qualify for SERB are too small to bid as prime contractors on most state contracts, however even those contracts may provide subcontracting and joint venture opportunities that would be within the capacity of a small business.  The SERB Program encourages prime contractors to consider SERB businesses when seeking supplies and services their own companies cannot provide.   To see if you qualify for this program visit http://www.dgs.state.pa.us/bcabd/cwp/view.asp?a=3&Q=120116&PM=1, or contact the local PTAC.

      2.    PA Woman/Minority-Owned Business

This program is based on the ownership type (gender/race) of a company. Certification is a comprehensive process, which assures only qualified companies are approved. In addition to owning at least 51% of their companies, MBE and WBE owners must be U.S. citizens, must have training or experience in their business fields, and must have management and operational control of the company. To determine if your company qualifies or to obtain any additional information on this program visit www.dgs.state.pa.us/bcabd/cwp/view.asp?a=3&q=121117&bcabdNav=|, or contact the local PTAC.