XL EagleSmall business (Small business concern)
Small business stands for Small business concern. In federal contracting, a small business is a for-profit company, organized and operating mainly in the U.S., that is independently owned and not dominant in its field, and that falls under SBA's size standard for the NAICS code on the bid. You represent your size in SAM.gov and on each offer.
Small status unlocks small business set-asides and helps prime contractors meet their subcontracting goals. The federal government has a goal of awarding a set share of contract dollars to small businesses every year.
Why it matters to a small contractor
Being small is your biggest advantage in federal work. Many contracts are open only to small businesses, and large primes actively look for small subcontractors to meet their plans.
Example
A three-person security company bids on a guard services contract set aside for small businesses. Because the large national guard firms cannot bid, it competes only against other local small firms.
Small business: common questions
Do I need an SBA certificate to be a small business?
No. For general small business set-asides you self-represent your size in SAM.gov. Certifications are only needed for special programs like 8(a), HUBZone, WOSB and VetCert.
Can a nonprofit be a small business?
Generally no, for SBA contracting programs. The definition covers for-profit concerns.
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