8a, SBA, MBE, WBE

Information about the various business certifications.

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Small Business Association (SBA) 8a Certification Requirements

A SBA 8a certification is beneficial for small businesses because it gives them access to contracts that are "set-aside" by the government and corporations who do business with the government. These agencies and corporations are required to spend 20% of their budget on small, disadvantaged companies who have a high likelihood of succeeding if given a monetary boost. It is also beneficial because even during a recession, the government and corporations must continue spending at least 20% of their funds on small businesses to help stimulate economic growth.

Before you apply for an SBA 8a certification, though, you should keep in mind a few requirements that will help you figure out if it is right for you. For example, you should look at your target customers and ensure the contracts you would receive ask for things your company can supply.

Small Business Association

The SBA definition of small business is a "small, disadvantaged company", or a business that is under a $250,000 personal net worth, the equity in a personal residence or business. Making attempts to hide assets from the SBA is not advised, as they have a variety of tools and resources to help them determine the size of a business.

The SBA will also want to see that your business has been running for at least two years, is currently in business, and has enough working capital and business contracts to ensure a high likelihood of success; they do not want to invest in businesses that are likely to flop. The only clause that may be overlooked is the two year requirement; if your business has a track record of completing contracts and has generated profits, you may request a waiver.

8a Certification

When filling out a SBA 8a certification application, the person applying for the business must be the majority owner, and involved in its day-to-day management. You must also be a US citizen. If you fit all of these requirements, you may find applying a solid financial investment.

A SBA 8a certification can bring significant income to a small business. However, the process for obtaining one can be time confusing and confusing, especially if you are unfamiliar with the process. Fortunately, there are a number of businesses who will help you fill out the application form correctly, and write supporting documents. Outsourcing this work can be vital for a business that does not have the time to spend trying to figure out how the process works; outsourcing it also ensures that it is done professionally and in a timely manner.

For more information regarding the SBA 8a certification process, please visit our web page or Contact Us at 407-857-9002.

Article submitted by Shannen Constable, BizCentral USA service consultant.

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Minority Business Enterprise (MBE) Certification Requirements

If you are interested in applying for MBE you should keep the following in mind, regardless of whether you are filling it out yourself or outsourcing it to a business consultant:

Your business must be owned by 51% or more individuals that are part of a socially disadvantaged group. These include, but are not limited to: African American, Native American, Asian, and Hispanic.

The applicant(s) must be the business owner, or have the authority to make day-to-day and long term decisions for the business. They must also be able to operate without reliance of a firm(s) that is not also owned by a minority.

The applicant firm must meet the small business size standards established by the U.S. Small Business Administration (SBA).

Your business must be operational; it is usually required that your business has been running for 6 months to 2 two years minimum, but notably successful businesses may be able to get this requirement waivered.

MBE Certification

Like the Woman Owned Business Certification (WBE), MBEs operate on various levels. If you choose to apply for a national level certification, it is recommended that you certify with the National Minority Supplier Development Council (NMSDC), a leading organization in linking small businesses with larger ones.

MBEs are available on the local, state, federal, and nation level:

If you primarily do business with local agencies, a local certification may serve you best.

If you wish to do business state-wide, and potentially nation-wide with large companies, you may want to consider state certification.

Federal certification lets you do business specifically with the U.S. federal government

National certification lets you access contracts created by large corporations that operate in multiple states, though some of these companies also or only accept a state certification.

MBE Benefits

Some benefits of obtaining a MBE are access to specialized loans, to educational seminars and training, and introductions to local, state, and federal corporations or businesses. Though you may self-certify as a MBE, formal recognize is critical if you want to access the benefits of being a MBE. It also shows potential affiliates that you are a stable business that is on-track for success.

Another important benefit of Minority Business Enterprise Certification is that it allows your business to access contracts specifically set aside from MBE certified businesses. These contracts are "set-aside" by the government and corporations who do business with the government, as they are required to spend 20% of their budget on MBE businesses. MBE certification is especially beneficial because the 20% requirement remains even in the midst of a recession in order to help stimulate economic growth.

For more information regarding MBE certification, please visit our web page or Contact Us at 407-857-9002.

Article submitted by Shannen Constable, BizCentral USA service consultant.

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Women Owned Business Certification Requirements

The Women's Business Enterprise National Council (WBENC) is a 501(c)(3) nonprofit that provides national certifications to women owned businesses nationwide, and advocates that American corporations be supplied through more women owned businesses.

Women Owned Businesses

The WBENC was founded in 1997, and is partnered with 14 Region Partner Organizations. They are the largest third-party certifier of women owned businesses in America. Applying is a rigorous process, but acceptance brings a host of benefits. You may find it beneficial to outsource your application to an experienced company.

Women Owned Business Requirements

Important things to consider when applying to become a certified woman owned business are:

Your business must be owned, operated, and controlled by a staff that consists of at least 51% women. They must also have control of day-to-day operations and be able to make long-term decisions on behalf of the business.

Your business must be able and willing to supply required supporting documentation (a list is available here).

The women applying must also be able to sign the business's checks, cards, documents, and other critical papers.

The women applying must be within the highest rankings of the company, and their business must be able to operate without the assistance of another firm that is not also owned by at least 51% women.

If you are a corporation, your stock must be held by at least 51% women.

If you are a LLC, your business's Operating Agreement must note that 51% of the business is owned by women.

Many businesses find pursuing WBENC certification worthwhile, despite the work that goes into obtaining it. The WBENC's certification is accepted by hundreds of American corporations and government agencies, giving your business access to a number of contracts "set-aside" by the government and corporations who do business with the government. They are required to spend 20% of their budget on WBE businesses, even in the midst of a recession in order to help stimulate economic growth.

Certified Woman Owned Business

The WBENC's rigorous progress also means accepted businesses meet their standards and expectations. This makes your business look both professional and successful to possible affiliates. It also gives your business exposure, as interested companies may search the WBENC's online database for certified companies.

Some things to keep in mind are that it takes about 90 days for your application to be processed. You must also reapply for certification annually, and an on-site visit it required during your initial application and every three years afterwards. The WBENC also has a FAQ page to help answer any possible questions.

For more information regarding women owned business certification, please visit our web page or Contact Us at 407-857-9002.

Article submitted by Shannen Constable, BizCentral USA service consultant.

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Woman Owned Business Enterprise (WBE): Third-Party Certification or Government Certification?

Having a Women Owned Business Certification for your business can be an asset to its success, especially if you are a small business. Similar to a SBA 8(a) certification, certified woman owned business advantages include access to contracts that are "set-aside" by the government and corporations who do business with the government who are required to spend 20% of their budget on businesses with these certifications. These certifications are especially beneficial because the 20% requirement remains even in the midst of a recession, as it is to help stimulate economic growth. There are many companies who can help you fill it out successfully.

Woman Owned Business Certification

Figuring out how to become WBE certified can be tricky. An important first step is to select which one is right for your business. WBE certifications come in four different varieties:

Local, which can be obtained at your city or county's certifying office. This is most beneficial if there are local agencies you would like to receive business from.

State, which is available in most states through your state certifying office. If your state has a variety of companies and agencies within it you'd like to do business with, this is your best choice. Is it also important to note that some large corporations that operate within multiple states will accept with a National Certification OR a State Certification. It depends on the business.

Federal is unique because you may self-certify yourself as a WBE (though this doesn't mean this is your opportunity to lie). A Federal level WBE lets you do business with the U.S. federal government.

National allows you to access contracts created by large corporations that operate in multiple states. These corporations may be privately or publicly owned, though it is important to reiterate that they may accept a State OR a National Certification, so it is critical that you review their guidelines before applying for your certificate.

There are also third-party certifiers, such as the WBENC and the NWBOC. This certification is recommended if you intend to work within the private sector. Each city, county, state, and federal agency also has their own certification program unique to them.

Women Owned Business Requirements

To qualify for a WBE certification, your business must:

Be owned, managed, and controlled by 51% or more women.

Owned by a woman, and able to operate without reliance on a firm(s) that is not also owned by a woman.

The business owner, asides from being a woman, must direct operations.

Be open for at least six months, and still running.

Owned by a U.S. citizen.

If your women owned business meets these requirement, you may want to consider applying for a WBE. That said, the process can be confusing, especially if one has never applied beforehand. Fortunately, there are a number of businesses that will fill out and create all necessary paperwork quickly and professionally.

For more information regarding WBE, please visit our web page or Contact Us at 407-857-9002.

Article submitted by Shannen Constable, BizCentral USA service consultant.

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Benefits of an 8a Business Certification

Small businesses all over the country have benefited from certification such as an 8a in multiple many ways. Primarily, once the business receives this type of certification, it helps level the playing field with other large companies where price is not the only determining factor regarding bidding to secure a contract. These government certified 8a companies can win contracts from the  federal government that are set aside specifically for 8a companies.

All federal government agencies are mandated to source some of their needs for goods and services via purchasing from disadvantaged companies, primarily 8a certified small businesses. This makes this type of business certification extremely advantageous.

The SBA small business administration is an agency which certifies companies for the 8a. It also offers assistance and help to all the well-qualified small scale business owners and the owners whose businesses are lagging behind because of social and economical disadvantages. Over the years, this type of program has been both important and rewarding for plenty of budding entrepreneurs. Certified companies are able to receive unique contracts, and so use these opportunities to help build the foundation of their business. B oth the government and the 8a listed company benefit from these certifications.

The advantages of the SBA 8a certification

These types of certifications are very beneficial for the federal government. The agencies or the institutes which are funded by the federal government find it surprisingly convenient and easy to produce the requirements for 8a certification SBA, especially if they are aided by an experienced company. These certifications make it easier for both the business to sell their goods or services, and for federal agencies to get their necessary products and services, because contracting agencies that use 8a set-aside contracts require much less paperwork and time.

8 A Program

Other advantages include limiting your competition; keep in mind, there are less than 10,000 certified 8a business currently participating in the 8a Program  Also, businesses that are not considered small by SBA do not have access to set-aside 8a contracts, therefore your 8a certification makes your business attractive to larger businesses interested in partnerships or joint ventures.

For more information regarding SBA 8a certification, click here to visit our website or Contact Us at 407-857-9002. 

Article submitted by Hector Guadalupe, BizCentral USA business consultant