Federal Small Business Definitions

The Federal Government, through Section 129 of Public Law 100-590, Small Business Administration (SBA) Reauthorization Act of 1988, has provided the following guidelines for certification of small businesses, which will facilitate participation in federal programs and bidding for government-funded contracts.

Disadvantaged Business is a business that is (1) at least 51 percent owned and operated by disadvantaged individuals, or, in the case of publicly owned business at least 51 percent of the stock is owned by one or more disadvantaged individuals, and (2) whose daily business operations are managed and directed by one or more of the disadvantaged owners. "Operated" means actively involved in the day to day management. Disadvantaged individuals include Black Americans, Hispanic Americans, Native Americans, Asian Americans, and other minorities, or individuals found to be disadvantaged by the Small Business Administration pursuant to Section 8 of the Small Business Reauthorization Act.

8(a) Business is a firm that is a small business, unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States. For further information refer to http://www.sba.gov/certifications.

HUBZone Business is a business concern that is small, located in a "historically underutilized business zone" (HUBZone), owned and controlled by one or more U.S. Citizens, and at least 35% of its employees reside in a HUBZone. For further information refer to http://www.sba.gov/certifications.

Labor Surplus Area means a geographical area identified by the Department of Labor in accordance with 20 CFR part 654, subpart A, as an area of concentrated unemployment or underemployment or an area of labor surplus.

Minority-Owned Business is a business that is (1) at least 51 percent owned and operated by one or more minority individuals, or, in the case of publicly owned business at least 51 percent of the stock is owned by one or more minority individuals; and (2) whose daily business operations are managed and directed by one or more of the minority owners. "Operated" means actively involved in the day to day management.

Minorities includes the groups with the following ethnic origins: African, Asian Pacific, Asian Subcontinent, Hispanic, Native Alaskan, Native American, and Native Hawaiian.

Rural Small Business is a small business as described above, where the principal place of business, production, or manufacture occurs in a rural area or rural small town as identified by the SBA.

Small Business is a business concern that is organized for profit, is independently owned and operated, is not dominant in the field of operation in which it is bigger, and meets size standards as prescribed by SBA (13 CFR Part 121).

Woman-Owned Business is a business that is (1) at least 51 percent owned and operated by a woman or women, or, in the case of publicly owned business at least 51 percent of the stock is owned by one or more women; and (2) whose daily business operations are managed and directed by one or more of the women owners. "Operated" means actively involved in the day to day management.