Definition of a Small Business (NAICS codes)
and Small Business Types

 

Small Business  & NAICS codes

A small business, including its affiliates, is one that is independently owned and operated, not dominant in the field of operation in which it is bidding on government contracts, and qualified as a small business under the criteria in 13 CFR part 121, and NAICS size standards.

The North American Industrial Classification System or NAICS codes determine whether a business is considered small by their industry code. These codes pertain to the size of the firm and not the value of the procurement. The standards are set by either the number of employees or by the average annual sales over a three-year period. Click here to look up your NAICS code.  Click here to look up the size standard for that NAICS Code.

Small Disadvantaged Business

Is a small business that is: at least 51% owned by one or more socially and economically disadvantaged people or in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more disadvantaged people; is a U.S. citizen; owns, operates and manages the business on a daily basis; and is in business at least one year.

The owner(s) must have less than $750,000 personnel net worth at the time of application & during participation.

  • To do business with BSA a small disadvantaged business, must  self-certify with BSA, that they meet all the small disadvantaged business criteria.

The following people are automatically considered to be socially and economically disadvantaged:

  • Black Americans
  • Hispanic Americans
  • Indian Tribes are those individuals who have at least 51% of their origins in any Indian tribe, band, nation or other organized group of Indians, including an Alaska Native Corporation person.
  • Native Americans are those individuals who have at least 51% of their origin in: American Indians, Eskimos, Aleuts, and native Hawaiians.
  • Asian-Pacific Americans are those individuals who have at least 51% of their origins in: Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, the U.S. Trust Territory of the Pacific Islands, (Republic of Palau), the Northern Mariana Islands, Laos, Cambodia, Taiwan, Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, or the Federated States of Micronesia.
  • Subcontinent Asian Americans - are those individuals who have at least 51% of their origins in: India, Pakistan, Bangladesh, Sri Lanka, Bhutan, or Nepal.

The 8a program is a 9 year program for small disadvantaged business  (note: 8a firms automatically qualify as SDB status). Woman-owned businesses can qualify for this program IF they can prove they have been socially or economically disadvantaged in their industry. An 8a company must be certified with the Small Business Administration.

Woman-Owned Small Business

Is a small business that is: at least 51% owned by one or more women or in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more women; is a U.S. citizen; owns, operates and manages the business on a daily basis; and is in business at least one year.

HUB-Zone Small Business

Is a small business that is: located in an Historically Underutilized Business Zone (HUB-Zone); owned & operated by one or more U.S. citizens; and at least 35% of its employees must reside in a HUB-Zone. 

Veteran-Owned Small Business

Is a small business that is at least 51% owned by one or more veterans or in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more veterans. Veteran-Owned Small Business

Service-Disabled Veteran-Owned Small Business

Means a small business that is at least 51% owned, operated and managed by one or more service-disabled veterans. In the case of any publicly owned business, at least 51% of the stock must by owned by one or more service-disabled veterans and whose management and daily business operations are controlled by one or more service-disabled veterans or in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran. A Service-disabled veteran is defined in 38 U.S.C. 101(2) with a disability that is service-connected. Service-Disabled Veteran-Owned Small Business

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Last Modified: March 19, 2012
Please forward all questions about this site to: Michelle Holbrook