The federal government, in recent years, has greatly increased the amount of spending dollars available for small business. Small Business now receives 25.05% of all federal contracting dollars. With that said, SBA/VA Certification holders take the lion’s share of that business.
| Small Business Federal Spending | $120.8B |
| 8(a) Certification / SDB | -46.5B |
| WOSB Certification | -22.9B |
| SDVSOB Verification | -20.6B |
| HUBZone Certification | -9.9B |
| Total Available for Small Business | 20.9B |
There are more 8(a) dollars than dollars for small businesses without a certification. When you compare the 8(a) certification to other certifications, the 8(a) represents the largest amount of contract dollars available of any certification, as well as the fewest number of certification holders, except for HUBZone firms.
Below is a comparison between SBA/VA Certifications.
| 8(a) | 8(m) WOSB/EDWOSB | SDVOSB | HUBZone | |
|---|---|---|---|---|
| Number of firms | 5,843 | 64,834 | 22,746 | 7,391 |
| Disadvantaged Group | Typically Minority Owned Firms, Women and Service Disabled Veterans Can Apply. | Women Owned Businesses | Service Disabled Veteran Owned Small Businesses | Businesses and employees located in Historically Underutilized Areas. |
| Federal Budget Target %/$ | 5.00% $22.0 Billion |
5.00% $22.0 Billion |
3.00% $13.2 Billion |
3.00% $13.2 Billion |
| Results Actual | 9.10% $40.2 Billion |
4.71% $20.8 Billion |
4.05% $17.9 Billion |
1.65% $7.3 Billion |
| Average Federal Revenue per Firm | $6,397,199 | $353,210 | $905,654 | $1,339,467 |
| Required Ownership and Control | 51% in Disadvantaged Group | 51% in Disadvantaged Group | 51% in Disadvantaged Group | 35% of employees in HUBZone |
| US Citizen Requirement | Yes | Yes | Yes | Yes |
| Small Business Requirement based on NAICS Code | Yes | Yes | Yes | Yes |
| Economic Disadvantaged Metric | Owner makes less than $250K on average for past 3 years. Net worth under $250K less primary residence, IRA, 401K and value of the business. Total assets of applicant under $4 million without exceptions. | None for WOSB and for EDWOSB owner must make less than $350K on average for the past 3 years. Net worth under $750k (with some exclusion). | No requirements | No requirements |
| Years in Business | 2 years – in some cases a firm can be eligible for a two year waiver. | No requirement | No requirement | No requirement |
| Certification Term | 9 years | No limit | No limit | No limit |
| Set-aside Condition | Sole source up to $6.5 MM manufacturing and up to $4.0 MM all other | Sole source as long as 2 offers or more are expected to be submitted; must be in one of 83 designated NAICS codes; $5MM for manufacturing $3MM all other | Sole source as long as 2 offers or more are expected to be submitted; must be in one of 83 NAICS codes; $5MM for manufacturing $3MM all other | Sole source up to $5MM for manufacturing up to $3MM all other |
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