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Tag: Small Business Administration

SBA Certifications Upgrade: What You Need to Know

The Small Business Administration (SBA) will upgrade the process for applying for and managing federal contracting certifications. Here’s what you need to know:

The SBA’s certification upgrade begins August 1, 2024. During the upgrade, the SBA will not accept initial certification applications. The upgraded system should be available for new certifications in early September. (certify.sba.gov)

What Does This Mean for My Firm?

  • Most certified firms will not be impacted by the application pause.
  • New or prospective applicants should wait to apply after the upgrade.
  • The SBA will process applications submitted before August 1, 2024, in the order received.
  • Firms needing to renew should receive guidance from their certification program.
  • Firms facing a critical contracting deadline can contact certifications@sba.gov and provide the proposal number, agency, and bid due date. (ibid)

Which Certifications Are Impacted by the Upgrade?

  • Women-Owned Small Business (WOSB)
  • Economically Disadvantaged Women-Owned Small Business (EDWOSB)
  • 8(a) Business Development Program
  • Veteran Small Business Certification (VOSB)
  • Service-Disabled Veteran-Owned Small Business (SDVOSB)
  • Historically Underutilized Business Zones (HUBZone) Program (ibid)

The SBA will provide more resources and guidance in the coming days.

Have questions or need additional guidance, give us a call.

Federal Government reaching even higher for Small Disadvantaged Businesses

Last year, small disadvantaged businesses received over 11% of federal contracting dollars. Now, the federal government aims to reach 13%. (Next Gov/FCW October 26, 2023)

The Office of Management and Budget recently issued a memo directing federal agencies to target awarding 13% of their contract spending to small disadvantaged businesses in fiscal year 2024. This objective aligns with a broader target set by an executive order earlier this year, which calls for the government to ultimately allocate 15% of federal procurement dollars to such businesses in fiscal year 2025. (ibid)

The executive order, focused on advancing racial equity and supporting underserved communities through federal government initiatives, also instructed the Small Business Administration to establish annual agency-specific goals in collaboration with other departments to further the government’s overall objectives for small disadvantaged businesses. (ibid)

In her October 18, 2023 memo, OMB director Shalanda Young emphasized that utilizing the federal government’s purchasing power to foster economic growth in underserved communities is a central element of the president’s equity agenda. It also aligns with the administration’s broader economic strategy to bolster small businesses and enhance the resilience of the nation’s supply chains. (ibid)

The memo states that federal agencies awarded small disadvantaged businesses a record-breaking $69.9 billion in fiscal year 2022, representing 11.4% of all contracting dollars and an increase of $7.5 billion compared to the previous year. (ibid)

While agencies also set records for spending on programs designed to improve access to contracts for historically underrepresented groups and small businesses in general, they fell short of the goals for the share of contracting dollars awarded to women-owned small businesses and historically underutilized business zone (HUBzone) small businesses, according to SBA data released earlier this year. (ibid)

Young also highlighted the significance of the 8(a) Business Development program at SBA, which serves as a gateway for expanding access to federal contracts for businesses that have faced past discrimination. She emphasized the need for agencies to continue promoting contract access for HUBZone businesses, women-owned small businesses, and service-disabled veteran-owned small businesses, as these often fall under the category of small disadvantaged businesses. (ibid)

In the past, the General Services Administration and SBA announced the establishment of a pool of small disadvantaged businesses in the 8(a) program to facilitate their access to contracts under GSA’s Multiple Award Schedule Program. (ibid)

Moving forward, OMB will collaborate with SBA, the Domestic Policy Council, National Economic Council, and other entities to advance efforts aimed at diversifying the government’s supplier base. This includes the adoption of innovative acquisition practices to reduce transaction costs for small businesses. (ibid)

Are you part of a small disadvantaged business seeking additional business opportunities with the government? Give us a call.

SBA Halts New Applications for 8(a) Program: What You Need to Know

The Small Business Administration (SBA) has put a temporary hold on accepting new applications for the 8(a) small business program. This move comes in the aftermath of a significant court decision that found parts of the program unconstitutional. (Washington Technology August 21, 2003)

The crux of the matter lies in the SBA’s utilization of the “rebuttable presumption” process, which allowed many companies to be certified as small, disadvantaged businesses without substantiating their social disadvantage. However, a recent court case, involving Ultima Services, a non-8(a) company, challenged this process. The court ruled in favor of Ultima Services, asserting that the use of rebuttable presumption violated their Fifth Amendment rights. Consequently, the SBA has been compelled to halt the acceptance of new 8(a) program applications. (ibid)

If your company was certified through the rebuttable presumption process, there are specific actions you must take to continue in the 8(a) program. The newly released guidance requires affected businesses to submit a “Social Disadvantaged Narrative.” This narrative should encompass the identities forming the basis of your social disadvantage, detailed accounts of discriminatory incidents related to education, employment, or business history, including dates, locations, parties involved, conduct details, and motivations behind the bias or discrimination. You should also elucidate how these incidents impacted your business progression. (ibid)

Existing applicants can proceed with their applications, though additional information might be needed. For those already within the 8(a) program, the narrative submission is not obligatory if previously completed. (ibid)

SBA is closely collaborating with the Justice Department to chart the course ahead in response to this court decision. Despite the temporary suspension of new applications, the agency is working on directives for agencies to continue awarding contracts to 8(a) firms. (ibid)

Remember, this situation is evolving. A hearing on August 31st could bring about changes, and SBA’s forthcoming guidance for contract awards to 8(a) firms remains eagerly anticipated. Furthermore, it’s important to note that the court’s ruling doesn’t affect 8(a) firms owned by Alaska Native Corporations or tribally-owned entities. They can continue business as usual. (ibid)

Stay tuned for updates as this story unfolds, and ensure you’re up to speed on the latest developments in the 8(a) program landscape. Should you have questions concerning the newly released guidance requirements, give us a call.

Giving small minority owned businesses a fair shake

The Small Business Administration and the General Services Administration have launched an initiative to improve the identification of minority-owned contractors. The aim is to simplify the process for federal procurement officials to connect with small, disadvantaged businesses across sectors. As part of President Biden’s goal to direct $100 billion in expanded contracting opportunities to historically marginalized firms by 2025, the initiative focuses on increasing federal contracting opportunities for small disadvantaged businesses (SDBs). (Nextgov May 30, 2023)

In the announcement released on May 25th, the General Services Administration and the Small Business Administration will establish a pool of SDBs participating in the 8(a) Business Development Program. This program will assist selected firms in gaining better access to federal contracts under the GSA’s Multiple Award Schedule Program. The SBA’s 8(a) program has proven successful in fostering partnerships between the government and SDBs while providing support to minority-owned businesses seeking federal contracts. (ibid)

The establishment of the pool of 8(a) firms aims to make it easier for procurement officials to locate and contract with small, disadvantaged businesses across industries. Historically, this has been a challenge due to a lack of centralized resources for identifying and engaging SDBs throughout the federal government. However, the May 25th announcement lacks details on acceptance requirements and the process for directing solicitations and contracting opportunities to the selected firms. Further information is yet to be provided by the SBA and GSA. (ibid)

The success of the initiative will depend on specific factors, according to Courtney Fairchild, president of the government contracting consulting company Global Services. Fairchild suggests that analyzing individual awards and the dollar value of aggregate awards through the pool will help determine the effectiveness of the effort. If successful, similar MAS Pools for Woman-Owned, HubZone, and service-disabled veteran-owned small businesses could be implemented to increase opportunities across all SBA-certified socio-economic groups. (ibid)

Experts recommend additional metrics for measuring the program’s effectiveness, such as the size and scope of available opportunities, the length of engagement, and the relevance of North American Industry Classification System codes. These metrics can help determine if the pool successfully recruits firms from a wide array of sectors. (ibid)

Whichever approach is taken to evaluate its success, the new program provides an opportunity to showcase the strengths, diversity of thoughts, and varied technological capabilities within the SDB community, according to Earl Stafford, CEO of Aperio Global, an SDB specializing in cybersecurity and artificial intelligence solutions. (ibid)

President Biden announced the plan in June 2021 to allocate $100 billion in federal contracting opportunities to SDBs over a five-year period, representing an almost 50% increase in set-asides for minority-owned businesses. Federal agencies seem on track to meet this goal after awarding $62.4 billion in federal contracts to SDBs last year, accounting for at least 11% of all federal contracting opportunities. The Office of Management and Budget has since raised contracting goals for all agencies and directed the SBA to award at least 12% of all federal contracts to SDBs in fiscal year 2023. (ibid)

Would you like to know more about the initiative to connect SDBs to federal agencies? Give us a call.

The SBA is serving our entrepreneurial veterans

Last Friday, the Small Business Association (SBA) announced that it would invest $3.5 million in grant funding to create veterans business outreach centers (VBOCs) in seven new locations, including Alaska, California, Colorado, Iowa, Nebraska, Nevada, and South Carolina. The purpose of this investment is to expand entrepreneurial training and counseling services for veterans and military spouses who own and operate small businesses. (ExecutiveGov April 24, 2023)

The VBOCs will assist veteran-owned small business in various aspects such as business planning, loan application, marketing and outreach efforts. Additionally, grants will be set up to support Boots to Business classes to help active duty service members transition and determine whether entrepreneurship is a practical transition strategy.(ibid)

Isabella Casillas Guzman, administrator of the SBA, stated that “with this expansion of our veteran-focused network of small business centers, we can help more transitioning service members, veterans, National Guard and Reserve members, and military spouses start and grow their businesses and advance our economy.” (ibid)

Interested in grant funding for your veteran owned small business? Give us a call.