Small Business Training

1
Small Business Training
The Matchmakers High Performance Team Mark
IProfessional Small Business Training
Series Module 2 Identifying a Small Business
Prepared By The Matchmakers HPT A sub-committee
of the Northeast Regional Council March 21,2003
V 1B.1 - 10/05/03
2
Small Business TrainingModule and Title
Module 1. Public Laws and FAR Regulations
Janette Fasano, Ira Brand, Phil Varney Module
2. Identifying a Small Business Len Green,
Janette Fasano Module 3 How Small Business
Programs Work Deb Bode, Dave Rego, Ira
Brand Module 4 Preparing Small Business Plans
Phil Varney, John McMullen, Jim Hester Module
5 Small Business Assessment Rick Alexander,
Mike Robinson, Ron Belden Module 6 Small
Business Metrics and Reporting Phil Varney, John
McMullen Module 7 Information Resources and
FAQs Dave Rego, Deb Bode, Janette,(Group), Modul
e 8 Staying Current John Forcucci, John
McMullen Appendix
3
Module 2Identifying a Small Business
This Module covers the requirements for a Small
Business to qualify as a specific recognized type
for identification and reporting credit under
federal contracts. The module includes
definitions of Small Disadvantaged Businesses,
the minority groups and the certification
requirements for SDB and Hubzone firms.
4
Small Business TrainingModule 002A -
Identifying Small BiZ
The business is listed in the NAICS listings
How is a Small Business Identified and Certified?
Does not exceed NAICS code size standard, is not
owned by a large business, self certified
Certified by the 8A agency
Meets size std, SBA certified in Pro-Net, 51
owned and operated by a Disadvantaged person as
designated by the SBA
How is a Small Disadvantaged Business Identified
and Certified?
Certification by a Womens Business
organization
How is a Women Owned Small Business Identified
and Certified?
Meets size std, 51 owned and operated by one or
more women, Self Certified
Hubzones are specified by the Dept of Commerce
How is a Hubzone Firm identified and Certified?
Meets size std, located in a Hubzone, 35
of employees live in a Hubzone, owner US citizen,
Certified by SBA in Pro-Net
5
Small Business TrainingModule 002B -
Identifying Small BiZ
Certified by the VA
How is a Veteran Owned Business Identified and
Certified?
Meets size std, Owned by one or more
veterans with active duty (other than
training), Self Certified
Same as veteran, except has a disability card.

Meets size std, 51 owned and operated by one or
more veterans with active duty (other than
training) and a service related disability
Veteran firms are self-certified.
How is a Service Disabled Veteran Business
Identified and Certified?
6
Small Business TrainingModule 002C -
Identifying Small BiZ
Historically Underutilized Business Zone An area
located within one or more qualified census
tracts Qualified non-metropolitan counties (
Rural Districts) Lands within the external
boundaries of an Indian Reservation Hubzones
have higher unemployment and lower salaries than
the state average
Definition of HUBZone Empowerment (Public Law
104-135)

7
Small Business TrainingModule 002D -
Identifying Small BiZ
A for Profit concern including its affiliates
that is independently owned and operated Not
dominant in the field of operations in which it
is bidding on government contracts Qualified
as a small business under the criteria and size
standards in CFR Part 121 (See 19.102)
Definition of Small Business


8
Small Business TrainingModule 002E -
Identifying Small BiZ
Has received certification as a SDB concern
consistent with 13 CFR Part 124, Subpart B Net
worth of each individual upon whom the
certification applies does not exceed
750,000 Excluding Home Value Firm Equity. The
firm must be at least 51 unconditionally owned
by one or more socially and economically
disadvantaged individuals, or in the case of any
publicly owned business, at least 51 percent of
the voting stock is unconditionally owned by one
or more socially and economically disadvantaged
individuals and whose management and daily
business operations are controlled by one or more
such individuals.

Definition of Small
Disadvantaged Business


9
Small Business TrainingModule 002F -
Identifying Small BiZ

Who are the Socially and Economically
Disadvantaged Individuals?

• Black Americans
• Hispanic Americans

• Native Americans
• (American Indians, Eskimos, Aleuts, or Native
  Hawaiians)

10
Small Business TrainingModule 002G -
Identifying Small BiZ

Who are the Socially and Economically
Disadvantaged Individuals?

• Asian Pacific Americans (persons with origins
  from Burma, Thailand, Malaysia, Indonesia,
  Singapore, Brunei, Japan, China (inc Hong Kong),
  Taiwan, Laos, Cambodia (Kampuchea), Vietnam,
  Korea, Philippines, US Trust Territory of Pacific
  Islands (Republic of Palau), Republic of Marshall
  Islands, Federated States of Micronesia,
  Commonwealth of the Northern Marina Islands,
  Guam, Samoa, Macao, Fiji, Tonga, Kiribati,
  Tuvalu, or Nauru).
• Subcontinent Asian Americans (persons with
  origins from India, Pakistan, Bangladesh, Sri
  Lanka, Bhutan, the Maldives Islands or Nepal)

11
Small Business TrainingModule 002H -
Identifying Small BiZ
Socially disadvantaged individuals whose ability
to compete in the free enterprise system has been
impaired due to the diminished capital and credit
opportunities as compared to others in the same
or similar line of business who are not socially
disadvantaged.
Definition of Economically Disadvantaged
Individuals


12
Small Business TrainingModule 002I -
Identifying Small BiZ
Definition of Socially Disadvantaged Individuals
Those who have been subjected to ethnic prejudice
or cultural bias because of their identity as a
member of a group without regard to their
individual qualities.


13
Small Business TrainingModule 002J -
Identifying Small BiZ
A small business firm where, not less than 51 of
which is owned by one or more veterans (as
defined at 38 U.S.C. 101(2) or, in the case of
any publicly owned business, not less than 51 of
the stock of which is owned by one or more
veterans and the management and daily business
operations of which are controlled by one or more
veterans.
Definition of Veteran-Owned Small Business
Concern


14
Small Business TrainingModule 002K -
Identifying Small BiZ
A small business firm where not less than 51 of
which is owned by one or more service-disabled
veterans or, in the case of any publicly owned
business, not less than 51 of the stock of which
is owned by one or more service-disabled
veterans and the management and daily business
operations of which are controlled by one or more
service-disabled veterans or, in the case of
veteran with permanent and severe disability, the
spouse or permanent caregiver of such veteran.
Definition of Service-Disabled Veteran-Owned
Small Business Concern


15
Small Business TrainingModule 002L -
Identifying Small BiZ
A Small Business firm at least 51 owned by one
or more women, or, in the case of any publicly
owned business, at least 51 of the stock of
which is owned by one or more women and whose
management and daily business operations are
controlled by one or more women. DoD does not
consider women-owned businesses as disadvantaged.
Definition of Women -Owned Small Business (FAR
19.001)


16
Small Business TrainingModule 002M -
Identifying Small BiZ

• Provides incentives to major prime contractors
  (mentors) to assist small disadvantaged
  businesses (SDB) firms (proteges) in enhancing
  their technical and business capabilities
• Hopefully lead to increased SDB participation as
  subcontractors in federal and commercial
  contracts
• Fosters the establishment of long-term business
  relationships
• Firms are eligible to be mentors if they are
  currently performing a contract with an approved
  subcontracting plan and are currently eligible
  for the award of federal contracts

Mentor-Protégé Program (DFARS 219.71)


Public Law 101-510, the National Defense
Authorization Act of 1991, as amended,
established the Pilot Mentor-Protégé.
17
Small Business TrainingModule 002N -
Identifying Small BiZ

• Firms eligible to be proteges
• (1) SDB firms certified by SBA or
• (2) Qualifying organization that employ
• the severely disabled
• New law allows HUBZones, WOSBs and VOSBs to be
  protégés.
• Mentors and Proteges are required to execute a
  formal agreement that sets forth the type of
  developmental assistance that will be provided to
  the protégé.
• MP Programs may be for SDB Credit
• or Reimbursement.

Mentor-Protégé Program (DFARS 219.71)


Public Law 101-510, the National Defense
Authorization Act of 1991, as amended,
established the Pilot Mentor-Protégé.
18
Small Business TrainingModule 002O -
Identifying Small BiZ

• The Minority Institutions identify in addition to
  HBCUs, organizations having significant minority
  enrollment.
• Designated minority groups include African
  Americans, Native Americans, Hispanic Americans,
  Asian Americans, and Pacific Islanders.

Historically Black Colleges and Universities and
Minority Institutions (HBCUs/MIs) (DFARS
252.219-7003)


19
Small Business TrainingModule 002P -
Identifying Small BiZ

• The Indian Incentive Program provides
• an incentive to prime contractors that use
• Indian Organizations and Indian-owned
• Economic Enterprises as subcontractors.
• The program allows for an incentive
• payment equal to 5 of the amount paid
• to a performing NA subcontractor,
• if it is authorized by the contract.
• Indian organization means the governing
• body of any Indian tribe or entity
• established or recognized the governing
• body of an Indian tribe

Native American Indian Incentive Program (FAR
26.101, 52.226-1)


20
Small Business TrainingModule 002Q -
Identifying Small BiZ

• Indian-owned economic enterprise means
• any Indian-owned (as determined by the
• Secretary of the Interior) commercial,
• industrial, or business activity established
• or organized for the purpose of profit,
• provided that Indian ownership shall
• constitute not less than 51 percent
• of the enterprise

Native American Indian Incentive Program (FAR
26.101, 52.226-1)