8(a), HUBZone, MBE and Local Business Certifications

Beyond small, women- and veteran-owned status: what the SBA 8(a) and HUBZone programs, the Supplier Clearinghouse and Sacramento County’s local preferences offer.

Business certifications such as 8(a) and HUBZone, along with minority-owned and local-business programs, can each tip a close bid. Which one fits depends on who owns the business, where it operates and which agencies it sells to.

The right certification depends on who owns the business, where it operates and which agencies it sells to. Here are the other programs worth knowing in the Sacramento region.

SBA 8(a) Business Development

A program of up to nine years: four years of development and five transitional years.
For small businesses at least 51% owned and controlled by socially and economically disadvantaged U.S. citizens, in business at least two years, with owner limits of $850,000 personal net worth, $400,000 adjusted gross income and $6.5 million in assets.

SBA HUBZone

A 10% price evaluation preference in full and open federal competitions.
Requires a principal office in a HUBZone, at least 35% of employees living in a HUBZone and at least 51% ownership by qualifying U.S. citizens. Recertify every three years.
The federal goal for HUBZone firms is 3% of contracting dollars.

Minority-, LGBT- and disability-owned (Supplier Clearinghouse)

California’s Supplier Clearinghouse certifies minority-, LGBT- and disability-owned businesses, along with women- and disabled veteran-owned businesses, for utility contracting under CPUC General Order 156, at no cost.

Sacramento County local and micro-business preferences

Sacramento County’s Procurement Opportunities Program promotes local and small businesses.
It offers a 5% local vendor preference and a 2% micro-business preference, combined up to 7%, on eligible solicitations for goods and non-professional services up to $1,000,000.
Contact: Sacramento County Contract and Purchasing Services, (916) 876-6360.

Key takeaways

8(a) is a nine-year development program for disadvantaged owners.
HUBZone brings a 10% price evaluation preference on federal competitions.
Sacramento County offers up to 7% in combined local and micro-business preferences.