SMALL BUSINESS ADMINISTRATION

AUTHORIZATION:

Small Business Act of 1953, as amended, Section 7(b)(2), Public Law 85-536, 15 U.S.C. 636(b); Public Law 95-507.

OBJECTIVES:

To ensure compliance with the constitutional standards established by the Supreme Court in Adarand Contractors, Inc vs. Pena, relative to Federal action programs that use racial or ethnic criteria as a basic for decision making.

TYPES OF ASSISTANCE:

Direct Loans;  Guaranteed/Insured Loans.

USES AND USE RESTRICTIONS:

The Small Disadvantaged Business (SDB) program is a procurement tool designed to assist the government in finding firms capable of providing need services, while at the same time, helping to address the traditional exclusion of minority owned firms from contracting opportunities. Participation in the SDB program and the benefits are restricted to those firms who have satisfied the eligibility requirements and have been certified by the Small Business Administration as a SDB.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Eligible applicant must be: A small business concern as defined in SBA rules and regulations; firms must be at least 51 percent unconditional owned and controlled by one or more U.S. citizens who are socially and economically disadvantaged as defined by 13 CFR 124.105, 124.109, 124.110, and 124.111.

Beneficiary Eligibility:   Small businesses.

Credentials/Documentation:   Not applicable.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   This program is excluded from coverage under E.O. 12372.

Application Procedure:   SBA Form 2065, SBA Form 355, SBA Form 413, IRS Form 4506, and other documents identified in the SDB Checklist, as applicable.

Award Procedure:   Applicant is notified of a decision by letter from the Office of Small Disadvantaged Business Certification and Eligibility.

Deadlines:   Not applicable.

Range of Approval/Disapproval Time:   From 15 to 75 days depending on the completeness and complexity of application exclusive of any required legal or size issues.

Appeals:   Requests for reconsideration of a declined application may be made within 45 days from the date of service of the decline letter.

Renewals:   SDB Certification last, generally, for a three (3) year period. Firms may reapply after their initial certification has expired.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Not applicable.

Length and Time Phasing of Assistance:   Not applicable.

POST ASSISTANCE REQUIREMENTS:

Reports:   Not applicable.

Audits:   Not applicable.

Records:   Completed applications must be maintained.

FINANCIAL INFORMATION:

Account Identification:   73-0100-0-1-376.

Obligations:   (Loans) FY 99 $9,700,000; FY 00 est $10,814,000; and FY 01 est 9,000,000.

Range and Average of Financial Assistance:   Not applicable.

PROGAM ACCOMPLISHMENTS:

During fiscal year 1999, an estimated 2,500 certifications were issued.

REGULATIONS, GUIDELINES, AND LITERATURE:

13 CFR Part 124 8(a) Business Development; 124 Subpart B, Eligibility Certification and Protests Relating to Small Disadvantaged Business Programs.

INFORMATION CONTACTS: