Getting certified as a small business is primarily about qualifying for federal government contracts, which are required by law to direct at least 23% of contract dollars to small businesses each year. The process involves confirming your business meets size standards set by the SBA, registering in the federal contractor database, and potentially pursuing additional certifications that give you access to contracts set aside for specific groups. Here’s how each piece works.
How the SBA Defines “Small Business”
There is no single cutoff that makes a business “small.” The SBA sets size standards for every industry, identified by NAICS code (the six-digit classification system the government uses to categorize businesses). Depending on your industry, the threshold is based on either your average annual receipts or your average number of employees.
A landscaping company, for example, faces a different revenue ceiling than a software development firm. Manufacturing businesses are typically measured by employee count, while service and retail businesses are measured by revenue. The SBA publishes a full table of size standards covering every NAICS code, available as a downloadable file on sba.gov. If you’re unsure which standard applies to your business, the SBA’s Office of Size Standards can help (sizestandards@sba.gov or 202-205-6618).
Your size is calculated based on your business and all its affiliates and subsidiaries combined. If you own a 51% stake in one company and a controlling interest in another, the SBA may count both when measuring whether you’re under the threshold.
Register in SAM.gov
Before you can bid on federal contracts or pursue any SBA certification, you need an active registration in the System for Award Management (SAM.gov). This is the federal government’s official database of entities eligible to do business with federal agencies. Registration is free.
The process has three main steps:
- Create a Login.gov account. SAM.gov uses Login.gov for authentication. Go to SAM.gov, select Sign In, and you’ll be redirected to set up credentials if you don’t already have them.
- Get a Unique Entity ID. This replaces the old DUNS number as your business identifier. If you only need the ID and aren’t registering for contracts yet, you just provide your legal business name and physical address.
- Complete the full entity registration. This requires significantly more information: your business structure, banking details for electronic funds transfer, NAICS codes, tax identification number, and ownership details. SAM.gov provides a downloadable checklist to help you gather everything before you start.
Plan for some waiting time. Registration can take up to 10 business days to become active, and you must renew it every 365 days to keep it current. A lapsed registration means you can’t receive contract awards, so set a calendar reminder.
SBA Certification Programs
Once you’re registered in SAM.gov and confirmed as a small business under SBA size standards, you can pursue additional certifications that open doors to contracts specifically set aside for certain groups. Each program has its own eligibility rules and application process, all managed through the SBA’s online certification portal.
8(a) Business Development Program
The 8(a) program is designed for small businesses owned and controlled by socially and economically disadvantaged individuals. Participants get access to sole-source contracts (awarded without competition), mentorship, and business development assistance over a nine-year term. To apply, the business owner must demonstrate both social disadvantage (based on race, ethnicity, gender, or other factors that have limited their business opportunities) and economic disadvantage (personal net worth, income, and asset limitations apply). The business itself must be at least 51% owned by qualifying individuals.
HUBZone Program
The Historically Underutilized Business Zone program targets businesses that operate in and hire from economically distressed areas. To qualify, your business must meet four requirements: it must be small by SBA standards, at least 51% owned and controlled by U.S. citizens (or by certain entities like Community Development Corporations, agricultural cooperatives, Alaska Native corporations, Native Hawaiian organizations, or Indian tribes), have its principal office in a designated HUBZone, and have at least 35% of its employees living in a HUBZone. The SBA maintains a map tool on its website where you can check whether an address falls within a qualifying zone.
Women-Owned Small Business Program
The Women-Owned Small Business (WOSB) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) certifications give access to contracts in industries where women-owned businesses are underrepresented. The business must be at least 51% owned and controlled by one or more women who are U.S. citizens. For the EDWOSB designation, the women owners must also meet personal financial thresholds.
Veteran Small Business Certification
If you’re a veteran or service-disabled veteran, the SBA’s VetCert program certifies Veteran-Owned Small Businesses (VOSBs) and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). This program transferred from the Department of Veterans Affairs to the SBA on January 1, 2023. There is no self-certification option for VA sole-source and set-aside contracts. All veteran-owned firms seeking to count toward federal contracting goals must hold SBA VetCert certification.
How to Apply for SBA Certifications
All SBA certifications are applied for through the SBA’s online certification portal at certify.sba.gov. The general process looks like this:
- Gather documentation. You’ll need your business tax returns, articles of organization or incorporation, operating agreement or bylaws, proof of ownership, personal financial statements for the owners, and sometimes a business plan. The exact list varies by program.
- Complete the online application. The portal walks you through a series of questions about your business structure, ownership, operations, and finances. Upload your supporting documents as you go.
- Wait for review. The SBA reviews your application, and may request additional documentation or clarification. Processing times vary by program, with some taking several months.
If your application is denied, you’ll receive an explanation and typically have the option to appeal or reapply after addressing the deficiency.
State and Local Certifications
Federal certification is only one layer. Most state governments and many city and county agencies run their own small business certification programs, often with separate applications. These can include general small business certifications, minority-owned and women-owned business enterprise (MBE/WBE) designations, and disadvantaged business enterprise (DBE) certifications required for federally funded transportation projects.
State and local programs usually involve submitting proof of ownership, business size, and sometimes a site visit. Fees, processing times, and renewal cycles vary widely. Check your state’s procurement or commerce department website for specific requirements. Some jurisdictions accept SBA certifications as part of their review, which can simplify the process if you’ve already gone through the federal programs.
What Certification Actually Gets You
The practical benefit of certification is access to contracts that are restricted to qualified small businesses. Federal agencies use “set-asides,” meaning certain contracts can only be bid on by certified businesses in a particular category. Some contracts are awarded sole-source, meaning the agency can give the work directly to a certified firm without open competition, up to certain dollar limits.
Beyond government contracting, many large corporations have supplier diversity programs that prefer or require certified small businesses. Having an SBA certification, a state MBE/WBE certification, or third-party certification from organizations like the National Minority Supplier Development Council can help you get into these corporate supply chains. The certification itself won’t win you contracts, but it puts you in rooms and databases where the opportunities are listed.