Disadvantaged Programs at the Small Business Administration

A Home Business Article Contributed by Sharon Hill

Small Business Administration Minority Programs Abound

At the U.S. Government's only independent agency for small business, the Small Business Administration, minorities and disadvantaged groups find several helpful programs for the administration and expansion of their entrepreneurship endeavors.

One, called CommunityExpress Loans, was set up expressly for the purposes of supporting low and moderate income areas as well as women, veteran and minority-owned business ventures. The program is a partnership of the Small Business Administration and the National Community Reinvestment Coalition, combining SBA expertise in the areas of technical assistance and small business lending talent with the community development know-how of the NCRC.

The money can be spent on start-up, expansion, purchase of equipment, inventory, working capital or real estate acquisitions. To qualify, applicants must reside in the specially designated eligible areas, living in low or moderate income areas, and must be responsible for the administration of a New Markets small business.

A New Markets small business is defined as current and prospective small businesses owned by women, minorities, and veterans who are underrepresented in the population of small business owners compared to their percentage in the overall population.

Just this year the SBA signed an agreement with the U.S. Hispanic Chamber of Commerce at its 25th anniversary convention to make more resources, education and training available for the long-term success in administration of Hispanic small business across the country.

The SBA co-sponsors an annual National Minority Enterprise Development Week. The other two sponsoring organizations are the Minority Business Development Agency and the U.S. Department of Commerce. Each year outstanding small business minority, veteran or female business owners are honored for their achievements.

Small Business Administration Government Contract Preferences

When it comes to procuring government contracts priority is given to a person pursuing the administration of a small disadvantaged business. Eligibility requirements to be considered disadvantaged include ownership or control by a socially or economically disadvantaged individual. Groups that automatically are assumed disadvantaged include African Americans, Hispanic Americans, Asian Pacific Americans and Subcontinent Asian Americans. Individuals must have a personal net worth of less than $750, 000, excluding business assets and funds.

If you are not a member of one of the above presumably disadvantaged groups you can still apply to be considered disadvantaged. You must present written documentation of the social disadvantage. You need to show that the preponderance of evidence supports your claim of prejudicial treatment. Information on contract opportunities is provided by SBA Business Opportunity Specialists or Procurement Center Representatives.

Under the government's reformed affirmative action rules, small disadvantaged businesses are eligible for price evaluation adjustments (PEA) of up to 10 percent when bidding on federal government contracts in some industries.

Small Business Administration One on One Help

If you qualify as disadvantaged you can also participate in the Small Business Administration's Mentor Protege Program. Mentors provide management and technical assistance, financial assistance by way of loans or equity investments, subcontract support and assistance in completing prime contracts through joint venture associations of other disadvantaged firms.