How the SBA Helps Small Businesses Win Government Contracts
With help from the Small Business Administration (SBA), small businesses have the opportunity to win 23% of all government contracting dollars each year. According to the SBA, businesses that participate in SBA programs can:
- Qualify for exclusive set-aside and sole-source contracts
- Partner with established contractors to win contracts
- Get business mentoring and education to learn how federal contracting works
To begin the process of winning a government contract, you must register your business with the federal government's System for Award Management (SAM), the database federal agencies use to find contractors. The SBA uses the information you provide to SAM to establish your eligibility in SBA programs, which can help your company secure government contracts.
In addition, your small business must meet certain size requirements, using the guidelines set by the North American Industry Classification System (NAICS). The SBA's Size Standards Tool can help you determine whether your company qualifies as a small business for contracting purposes.
For additional federal contracting requirements, visit the SBA website.
More articles from AllBusiness.com:
- SBA Loans for Home-Based Businesses
- Buying a Franchise: What Types of Franchise Support Should I Expect From My Franchisor?
- Looking to Grow Your Small Business? Consider Selling to Uncle Sam
- 5 Tips for Getting One of the Best Small Business Loans: An SBA Loan
- How to Qualify for a Franchise Loan—Even With Bad Credit
SBA contracting assistance programs
The following is a list of SBA programs and eligibility requirements:
- Small Disadvantaged Business (SDB)—Certifying your company as a SDB means you get a price evaluation preference on a federal solicitation. SDB is defined as a business owned 51% by persons who are socially and economically disadvantaged.
- HUBZone—As a way of promoting economic development, certain distressed areas are eligible for added preference in seeking government contracts. To qualify, at least 35% of your employees must reside in a HUBZone (Historically Underutilized Business Zone).
- 8(a) Business Development program—The SBA's 8(a) program is intended to help disadvantaged small business owners compete for federal contracts. To qualify, at least 51% of the business's owners must be from a disadvantaged background, and the business must show a potential for success, among other qualifications.
- Women-Owned Small Business (WOSB) Federal Contracting programs—To qualify as a WOSB, a small business must be 51% percent woman-controlled, and women must be involved in the day-to-day decisions of the business.
- Veteran assistance programs—Businesses that are verified as a Veteran-Owned Small Businesses (VOSB) or Service-Disabled Veteran-Owned Small Businesses (SDVOSB) are eligible to participate in veteran assistance programs. Contact the VA’s Center for Verification and Evaluation (CVE) for information regarding VOSB verification.
