Federal Small Business Contracting Programs
The following definitions and policies explain how businesses are classified by the Small Business Administration (SBA). Some government loan programs and contracting programs are reserved, or “set aside,” for small businesses of various types. The following section defines each of the different types of small business concerns. To learn more about small business size standards and classifications, review the SBA’s Table of Size Standards.
Means a concern, including its affiliates, that is independently owned and operated, not dominant in its field of operation, and qualified as a small business under the criteria and size standards in 13 CFR part 121 (see 19.102). For a more extensive explanation, visit Federal Acquisition Regulation (FAR) Part 2 for definitions.
Affiliates, as used in this definition, means business concerns, one of whom directly or indirectly controls or has the power to control the others, or a third party or parties control or have the power to control the others. In determining whether affiliation exists, consideration is given to all appropriate factors including common ownership, common management, and contractual relationships. SBA determines affiliation based on the factors set forth at 13 CFR 121.103.
A small firm 51% or more owned and controlled by at least one socially or economically disadvantaged person or group.
For a more extensive explanation, visit FAR Part 2 for definitions. Full definitions of social and economic disadvantage are outlined in 13 CFR § 124.
Historically Underutilized Business Zone (HUBZone) means a historically underutilized business zone that is an area located within one or more qualified census tracts, qualified nonmetropolitan counties, lands within the external boundaries of an Indian reservation, qualified base closure areas, redesignated areas, governor-designated covered areas, or qualified disaster areas, as defined in 13 CFR 126.103. For a more extensive explanation, visit FAR Part 2 for definitions.
HUBZone small business concerns must meet the requirements described in 13 CFR 126.200, is certified by the Small Business Administration (SBA) and designated by SBA as a HUBZone small business concern in the Dynamic Small Business Search (DSBS) (13 CFR 126.103). SBA's designation also appears in SAM.
Service-Disable Veteran-Owned Small Business concern means a small business concern–(i) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; (ii) and The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.
Service-disabled veteran means a veteran, as defined in 38 U.S.C.101(2), with a disability that is service-connected, as defined in 38 U.S.C.101(16).For a more extensive explanation, visit FAR Part 2 for definitions.
Women-owned small business concern means a small business concern–(i) That is at least 51 percent owned by one or more women; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and (ii) Whose management and daily business operations are controlled by one or more women; or a small business concern eligible under the Women-Owned Small Business Program in accordance with 13 CFR part 127 (see subpart 19.15).
For a more extensive explanation, visit FAR Part 2 for definitions.
Section 8(m) of the Small Business Act authorizes certain procurement mechanisms to ensure that Women-Owned Small Businesses (WOSBs) have an equal opportunity to participate in Federal contracting. This part implements these mechanisms and ensures that the program created, referred to as the WOSB Program, is substantially related to this important Congressional goal in accordance with applicable law.
The program offers a variety of assistance to small firms that are 51% or more owned and controlled by socially and economically disadvantaged persons.
For a more extensive explanation, visit 8(a) Business Development program | U.S. Small Business Administration (sba.gov)
Section 8(a) of the Small Business Act (15 U.S.C.637(a)) established a program that authorizes the Small Business Administration (SBA) to enter into all types of contracts with other agencies and award subcontracts for performing those contracts to firms eligible for program participation. This program is the "8(a) Business Development Program," commonly referred to as the "8(a) program." A small business that is accepted into the 8(a) program is known as a "participant." SBA’s subcontractors are referred to as "8(a) contractors." As used in this subpart, an 8(a) contractor is an 8(a) participant that is currently performing on a Federal contract or order that was set aside for 8(a) participants.