Small Disadvantaged Business

Small Disadvantaged Business



The federal government mandates that all Federal agencies that award contracts For goods and services provide a
percentage of these awards To various socio-economic categories. This video covers Small Disadvantaged Businesses. Or SDB's. The SDB category has a goal of awarding at least 5% of prime total eligible dollar spent, And 5% of subcontracting total eligible dollars To small disadvantaged businesses each year. To be eligible to receive these awards
you must meet certain criteria. Be a small business that is at least 51%
owned and controlled by one or more Individuals, who are socially and economically disadvantaged, Be a firm that self-certifies as a small
disadvantaged business In the System for Award Management or Sam, Or be approved by the Small Business Administration Into the 8(a) program and certified as an SDB. Remember, GSA does not certify a company as a SDB, Companies must self certify. The 8(a) program is a nine year program That works to help socially and economically disadvantaged entrepreneurs Gain access to the economic mainstream of American Society. Program participants must demonstrate
potential for success. Participants can receive sole source contracts up to a
ceiling of four million dollars For goods and services And 6.5 million dollars for manufacturing. The timeframe of being involved with the SDB program
is as follows. Total participation in the 8(a) Business Development Or B.D. program is limited to nine years from the date of certification. No extensions beyond nine years may be granted The development is one to four years. The development stage is designed to assist 8(a) firms in overcoming economic disadvantages By providing access to markets And strengthening financial management skills. The transitional stage five to nine years And is designed to assist 8(a) firms with preparing to Complete the program as a viable company
capable of competing in the marketplace. Businesses must meet certain conditions
to qualify for the SDB category: The business must be 51% owned, controlled and managed by U.S. citizens that are economically disadvantaged, Must be a first-time user to the program, Must be owned by someone whose personal net
worth is less than $250,000 Must be a small business, And must be owned by someone with less than four million dollars in assets. For more information on how
GSA is helping small businesses please visit gsa.gov/OSBU Thank you.

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