Business certifications come with various perks and resources that can help your company stand out among competitors and scale your business faster.
Access to contracts: The federal government, as well as certain private-sector corporations, set aside contracts to be awarded to businesses with certain verified certifications. These contracts are only given to businesses with these certifications in order to ensure equal opportunity.
Ability to form joint ventures: Once you become certified, you often can join other businesses within your certification in order to compete for certain contracts.
Additional management and technical assistance: Many of these certification programs offer management and technical assistance to help their businesses grow and succeed.
8(a) Business Development Program
There is no fee to apply for this certification. To qualify for this program, businesses needs to:
The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities.
You will need to renew your HUBZone certification every three years.
There is no fee to apply for this certification. To qualify for the HUBZone program, your business needs to:
A Small Disadvantaged Business (SDB) is a small business that is at least 51% owned by one or more individuals who are socially and economically disadvantaged. SDB status makes a company eligible for bidding and contracting opportunities with governments and agencies.
Previously, you had to be certified by the Small Business Administration (SBA) or by a private certifying entity to qualify for certain federal programs, but all federal programs for SDB prime contractors have been discontinued.
Now, only government-wide and agency-specific goals for the percentage of federal contract dollars awarded to SDBs each year remain. Subcontracting plans set goals for the percentage of subcontract dollars to be awarded to SDBs and describe efforts that will be made to ensure that SDBs have an equitable opportunity to compete for subcontracts.
How to certify
Firms can self certify and attest to being an SDB rather than needing to go through a formal certification process. Firms can represent that they qualify as an SDB for participating federal subcontracting programs if it is owned and controlled by one or more socially and economically disadvantaged individuals.
8(a) participants are already considered to be SDBs for federal contracting purposes.
The government limits competition for certain contracts to businesses that participate in the Service-Disabled Veteran-Owned Small Business (SDVOSB) program. Joining the disabled veterans’ business program makes your business eligible to compete for the program’s set-aside contracts. You can still compete for contract awards under other socio-economic programs you qualify for.
You will need to renew your VOSB and SDVOSB certification every two years.
There is no fee to apply for this certification. To qualify for the disabled veterans’ business program, your business must:
How to certify
You can self-represent your business to the federal government as being owned by a service-disabled veteran. You will need to update the socio-economic status section of your business profile at SAM.gov.
The Department of Veterans Affairs, which awards a large amount of contracts to veterans, sets aside contracts for veterans through their Veterans First Contracting Program. Their program is not the same as the SBA’s program. To get access to set-aside Veterans Affairs contracts, your business must be verified through the Vets First Verification Program.
To help provide a level playing field for women business owners, the government limits competition for certain contracts to businesses that participate in the Women-Owned Small Businesses (WOSB) Federal Contracting Program.
Joining the Women-Owned Small Businesses (WOSBs) and Economically Disadvantaged WOSBs (EDWOSBs) federal contracting program makes a business eligible to compete for federal contracts set aside for the program.
You will need to renew your WOSB and EDWOSB certification each year.
There is no fee to apply for this certification unless you apply through a third party. To be eligible for the women’s contracting program, a business needs to:
To qualify as an economically disadvantaged business within the women’s contracting program, a business needs to:
The Minority Business Enterprise (MBE) certification helps minority-owned businesses get private-sector procurement of corporate members of the Mountain Plains Minority Supplier Development Council.
Benefits of being certified include:
You will need to renew your certification each year.
The application fee ranges from $525 to $1,150 depending on the size of your business. To qualify for the program, the business needs to:
The Women's Business Enterprises (WBEs) certification helps you promote your company to major corporations that are actively seeking to conduct business with women-owned businesses. The Women's Business Enterprise National Council (WBENC) is the leading authority on and certifying organization for women's business enterprises in the US.
WBEs get access to a current list of supplier diversity and procurement executives at hundreds of major US corporations and federal, state, and local government entities that accept this certification. WBEs also get formal and informal opportunities to pursue business deals with National Corporate Members and other WBEs.
You will need to renew your certification each year.
The application fee ranges from $350 to $1,250 depending on the size of your business. To qualify for the program, the business needs to be 51% owned, controlled, operated, and managed by a woman or women.
The LGBT-Owned Business Enterprise Certification verifies that eligible businesses are majority-owned by LGBT individuals, and subsequently grants this designation to such businesses as part of its LGBT Supplier Diversity Initiative.
You will need to renew your certification each year.
The $400 application fee is waived for members of local affiliate chambers. To qualify for the program, the business needs to: