Small business programs and set aside opportunities are business strategies for small companies to establish a long term relationship into doing business with government. Business owners and business development personnel need to be aware of small business classifications before submitting a bid.
SBA’s standard for determining business sizes is based on two factors; the number of employees over the past year, or the average amount of annual receipts over the past 3 years. These business aspects are required to include any subsidiaries and affiliates related to the enterprise. The assessment uses the largest number from the two factors to determine, whether or not your company is a small business matching the solicitation or contract classification.
The guidelines are stated in the “Table of Small of Business Standards”:
- Small businesses - not to exceed 500 employees for manufacturing or mining industries or an average of no more than 7 million dollars for nonmanufacturing industries.
- Computer industries - not to exceed receipt amounts of 25.5 million dollars.
- The highest allowable small business receipt average – not to exceed 35.5 million dollars.