Home Companies What is the SBA Set-Aside Contract?

What is the SBA Set-Aside Contract?

by GBAF mag

When you’re starting your own business, one of the best ways to get the attention of the public is through advertising. However, without advertising, no one will know that you are there. Small business enterprise is different than other businesses, though. The Small Business Administration (SBA), also known as the SBA, offers many certifications that small companies can pursue. If you are interested in learning more about these certifications, read on. Here is what you need to know about small business enterprise certification.

One of the most common small business development certifications offered by the SBA is the Association for Small Business Development (ASBD). In order to receive this certification, a business must follow a specific set of guidelines and meet defined criteria. This certification requires a company to explore the following opportunities:

One of the set-aside contracts offered by the SBA is the set-aside contract option. With this contract option, a small business can find financial assistance from multiple set-aside vendors. Each set-aside vendor will bid on the contract, but the set-aside contract is the lowest price that the vendor will ever pay. The SBA does not typically post these prices, so it’s important that you work with an experienced vendor. If you select the wrong vendor for your needs, the SBA will not post the price and the company may not receive the set-aside contracts that they were eligible to receive.

Another set of certifications that the SBA offers are women-owned small business enterprise improvement certifications. The women-owned small business enterprise certification focuses on making sure that women-owned small business enterprises have access to the federal government contracts and working capital advances necessary to help them grow and prosper. In order to obtain the women-owned small business enterprise improvement certification, a company must demonstrate its ability to improve the success rate of women-owned small business enterprises. Some of the ways in which the women-owned small business enterprise improvement certification can be achieved include: increasing the number of employees; developing more efficient customer service; ensuring that the profit margin increases and the company’s product quality improve. Some of the services that are included in the women-owned small business enterprise improvement certification include: accounting, billing, accounting/accounting preparation, budgeting, procurement, human resources management and training, marketing, project management and quality management.

Another set of certifications that the SBA offers to assist companies with their federal government contracts and working capital requirements are the set-aside contracts and working capital management certifications. The set-aside contract is a one-time fee certification that allows a company to procure a set level of contracts. Working capital management certifies a company’s ability to manage its working capital requirements. To receive set-aside contracts companies must first receive a working capital management certification. In order to receive the set-aside contract certification a company must also complete and submit to the SBA a completed business plan. The certification is most often issued by the U.S. government.

A federal government allocate certification is another way in which a company can receive federal government contracts and working capital advances. To be certified, companies must undergo a comprehensive review process. During the review process, companies must first meet eligibility requirements and submit documentation supporting their eligibility. After the initial submission of documentation, companies must wait until the federal government allocates funds and then apply for certified businesses to participate in the program. To receive the federal government allocate certification, a company must also complete and submit a Request For Qualification (RFQ) and an application.

To apply for an SBA set-aside contract or working capital advance, a small business must first become eligible for set-aside certification. To qualify, a company must: be majority owned and operated by U.S. citizens; have an original application signed by at least one U.S. citizen and one non-citizen co-owner; meet the economic base requirements; meet established financial capability and other requirements; and provide financial assurances that the business will meet its set-aside contract obligations. In addition, before a company can apply for certification, it must: be ninety days old or have been in operation for at least five years; have not received three negative notices of default from lenders or credit unions; have not filed bankruptcy; and have not had more than three unresolved claims with the Small Business Administration or other government agencies.

To apply for federal government contract and working capital financing through the Small Business Administration, companies need to apply for SBA set-aside certification. To receive a set-aside contract, companies need to meet the set-aside contract requirements and the federal government requirements for small business development certification. As a result, companies that successfully meet all three of these criteria are very likely to receive a set-aside contract from the SBA. However, small business development certification is not the only means of receiving government contracts.

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