DIR's Supplier Diversity Information Resource Guide 20, Jan 2012 | Page 20

Small Business Administration
COPYRIGHT 2012, DIVERSITY INFORMATION RESOURCES, MINNEAPOLIS, MN
Economically disadvantaged individuals are socially disadvantaged individuals whose ability to compete in
the free enterprise system has been impaired due to diminished capital and credit opportunities, as compared to othersin the same or similar line of business and competitive market area who are not socially
disadvantaged. For purposes of program entry, an individual whose personal net worth (excluding the equity
in their personal residence and business) exceeds $250,000 will not be considered economically disadvantaged.
Woman-Owned Business
A woman-owned business may be recognized as a “socially disadvantaged firm” if the owner is a member of
one of the groups for which social disadvantage is presumed. If the woman is not a member of one of the
groups for which social disadvantage is presumed, she must establish her individual disadvantage on the
basis of clear and convincing evidence that she has suffered discriminatory treatment because of her gender
and that this treatment has impeded her entry into or advancement in the business world. SBA will consider
any pertinent evidence but will give particular attention to evidence of discriminatory practices suffered in
the areas of education, employment and the business world.
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SBA defines a small business as one that is independently owned and operated and is not dominantsou its
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field. Depending on the industry, size standard eligibility is based on the average number of employees for
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the preceding 12-months or on sales volume averaged over a three-year period. ExamplesDiofr SBA general
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Manufacturing: Maximum number of employees may range from 500 to 1500, adepending on the type of
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product manufactured.
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Wholesale: Maximum number of employees may not exceed 100.n
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Services: Annual receipts may not exceed $2.5 to $21.5n million, depending on the particular service being
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Retail: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being
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General & Heavy Construction: General construction annual receipts may not exceed $13.5 to $17 million,
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Special Trade Construction: Annual receipts may not exceed $7 million.
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Agriculture: Annual receipts may not exceed $0.5 to $5.0 million, depending
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You normally have to be in business for two years in order to be eligible for the 8(a) program. However, a
waiver of the two-year rule may be granted if a company meets certain criteria. The waiver criteria are:
A. the individual(s) upon whom eligibility is to be based must have substantial and demonstrated business
management experience;
B. the applicant must have demonstrated technical expertise to carry out its business plan with a substantial likelihood for success;
C. the applicant must have adequate capital to carry out its business plan;
D. the applicant must have a record of successful performance on contracts from governmental and nongovernmental sources in the primary industry category in which the applicant is seeking program certification; and
E. the applicant must have or be able to demonstrate the ability to obtain the personnel, facilities, equipment and any other requirements needed to perform the contract.
SECTION 2

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2012 Supplier Diversity Information Resource Guide

CONTENT MAY BE EXPIRED; SEE WWW.DIVERSITYINFORESOURCES.COM FOR LATEST VERSION

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