As a way to promote small business, the U.S. government guarantees
that 23 percent of its contracts shall be awarded to small businesses. The Small Business Administration (SBA) is the government agency that ensures that small businesses get their allotted government contracts. When you register with the Central Contractor Registry (CCR), you begin the process of being certified by the SBA. (Read Registering as a Contractor with the Government for more information.)The SBA uses the information you give the CCR to establish your eligibility for a variety of government programs, such as Small Disadvantaged Business (SDB) and HUBZone, both of which can help your company secure government contracts.
The CCR sends your business’s Trading Partner Profile (TPP) to the SBA for certification. Using the guidelines set by the North American Industry Classification System (NAICS), the SBA certifies your small business size status. Your company’s total revenue and number of employees, including all divisions, branches, and affiliates as indicated on your TPP, determine your business status.
When establishing or reviewing size requirements, the SBA uses the following factors:
For more information on small business size standards and NAICS codes, visit the SBA Web site or e-mail the agency at sizestandards@sba.gov.
In addition to certifying your company’s small business size status, the SBA also provides a series of programs intended to give small businesses better opportunities. In terms of government contracts, it gives small businesses the ability to compete with larger companies in the bidding process. In particular, the federal government has established regulations that mean small businesses are guaranteed a certain percentage of government contracts conditional on their size, type of business, and SBA program for which they qualify.
SBA programs that you might want to research regarding your eligibility include:
Part of the CCR database is the Dynamic Small Business Search (DSBS), a powerful search engine managed by SBA and used to learn about prospective vendors for government contracts. The database offers a means for firms to conduct market research and confirm their certification for SBA procurement preference programs. To access, go to the CCR Web site and click on the “Dynamic Small Business Search” button.