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Small Business Development Center
Member, Texas Tech University System The Princeton Review - 373 Best Colleges, 2011 Edition

Firms may not be too small for feds, state

February 03, 2014

Many businesses think they are too small to do business with state and federal agencies. Think again.

The state of Texas and the United States government not only have opportunities for small businesses, they want and many times are required to set aside specific contracts for them. If you are looking to expand your small business this could be perfect for you. Typically the process is not easy, but if you stick to it and fill out the necessary paperwork, it can give your small business a real competitive advantage.

Many businesses think they are too small to do business with state and federal agencies. Think again.

The state of Texas and the United States government not only have opportunities for small businesses, they want and many times are required to set aside specific contracts for them. If you are looking to expand your small business this could be perfect for you. Typically the process is not easy, but if you stick to it and fill out the necessary paperwork, it can give your small business a real competitive advantage.

HUB (Historically Underutilized Business) Certification is a for-profit entity that fits the size standard and has its principal place of business in Texas. It has to be at least 51 percent owned by an Asian-Pacific American, black American, Hispanic American, Native American, American woman of any ethnicity and/or service disabled veteran who resides in Texas and actively participates in the control, operations and management of the entity’s affairs.

The benefits of HUB Certification include:

HUB Certification is free of charge.

Certification is valid for four years, provided the business continues to meet the eligibility requirements.

Business is registered on the comptroller’s Web-based HUB Directory. State agencies use the HUB Directory in conjunction with the CMBL (Centralized Master Bidders List) to solicit bids from certified HUBs for state purchasing and public works contracts.

The 8(a) Business Development Program is a business assistance program for small disadvantaged businesses. It offers a broad scope of assistance to firms owned and controlled by at least 51 percent by socially and economically disadvantaged individuals. Participation in this program is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage.

The benefits of the 8(a) program include:

Participants can receive contracts up to $4 million for goods and services and $6.5 million for manufacturing

8(a) firms also are able to form joint ventures and teams to bid on contracts. This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of combining of two or more contracts together into one large contract.

Consider obtaining these certifications to grow or expand your existing business. Contact Adviser Paul Howard of the Angelo State University Small Business Development Center for questions or assistance.

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    Paul Howard, ASU-SBDC Business Development Specialist

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