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Small Business Classification

If a vendor or supplier is identified as being a "small business", its small business status or classification must be identified. The various small business classifications are shown below.

Small Disadvantaged Business - a small business concern that represents, as part of its offer, that:

  1. It has received certification as a small disadvantaged business concern consistent with 13 CFR part 124, Subpart B;
  2. No material change in disadvantaged ownership and control has occurred since its certification;
  3. Where the concern is owned by one or more individuals, the net worth of each individual upon whom the certification is based does not exceed $750,000 after taking into account the applicable exclusions set forth at 13 CFR 124.104(c)(2); and
  4. It is identified, on the date of its representation, as a certified small disadvantaged business in the database maintained by the Small Business Administration (PRO-Net).

Women-Owned Small Business - a small business that is at least 51% owned by one or more women who are U.S. citizens; or, in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more women; and whose management and daily business operations are controlled by one or more women.

Veteran-Owned Small Business - not less than 51% of which is owned by one or more veterans (as defined in 38 U.S.C. 10192) and one or more veterans control the management and daily business operations.

Service Disabled Veteran-Owned Small Business - not less than 51% of which is owned by one or more service-disabled veterans and the management and daily business operations of which 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. Service-disabled veteran means a veteran, as defined in 38 U.S.C 101(2), with a disability that is service-connected, as defined in 38 U.S.C. 101(16).

HUBZone - a small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administration.

As defined in the Federal Acquisition Regulation (FAR), HUBZone small businesses and small disadvantaged businesses (SDB) must be certified as HUBZone or SDB by the Small Business Administration (SBA) and appear in SBA's PRO-Net database. 

Native American-Owned Small Business - Indian organizations and Indian-owned economic enterprises. The following definitions apply to this business classification:

  • "Indian" - any person who is a member of any Indian tribe, band, group, pueblo, or community that is recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs (BIA) in accordance with 25 U.S.C. 1452(c) and any "Native" as defined in the Alaska Native Claims Settlement Act (43 U.S.C. 1601).
  • "Indian organization" - the governing body of any Indian tribe or entity established or recognized by the governing body of an Indian tribe for the purposes of 25 U.S.C., Chapter 17.
  • "Indian-owned economic enterprise" - any Indian-owned (as determined by the Secretary of the Interior) commercial, industrial, or business activity established or organized for the purpose of profit, provided that Indian ownership constitutes not less than 51% of the enterprise.
  • "Indian tribe" - any Indian tribe, band, group, pueblo, or community, including native villages and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined in the Alaska Native Claims Settlement Act, that is recognized by the federal government as eligible for services from BIA in accordance with 25 U.S.C. 1452(c).

Black College or University - includes both Historically Black Colleges or Universities and Minority Institutions:

  • "Historically Black College or University (HBCU)" - an institution determined by the Secretary of Education to meet the requirements of 34 CFR 608.2. For the Department of Defense, the National Aeronautics and Space Administration, and the Coast Guard, the term also includes any nonprofit research institution that was an integral part of such a college or university before November 14, 1986.
  • "Minority Institution" - an institution of higher education meeting the requirements of Section 1046(3) of the Higher Education Act of 1965 (20 U.S.C. 1067k, including a Hispanic-serving institution of higher education, as defined in Section 316(b)(1) of the Act (20 U.S.C. 1101a).