Small Business Connection

Questions? E-mail us or call (800) 626-2250

Business Definitions

Section 1: Self-Certification

Self-certified Small Business meeting U.S. Small Business Administration (SBA) definition

Our definition of a small business is based on the system used by the U.S. Small Business Administration (SBA). SBA has established small business size standards that vary depending on the type of business. For contracting purposes, all wholesale and retail businesses are considered small if their average number of employees during the past twelve months is less than 500. Please note that all references to “average number of employees” include the total number of persons employed by a business at all locations, and it also includes all employees of any affiliated businesses. All businesses other than wholesale and retail need to first identify their primary North American Industrial Classification System (NAICS) code before they can determine the appropriate small business size standard.

The NAICS code system classifies businesses by the use of a numerical code that describes the type of business activity performed. For example, plumbers are classified under NAICS code 238220, while envelope manufacturers are classified under code 322232. For a complete list of NAICS codes, go to www.census.gov/naics/2007/NAICO607.HTM.

If your business can be classified under more than one NAICS code, the primary code should be the one responsible for the majority of revenue generated by your business. Once you have determined the primary NAICS code, go to http://www.sba.gov/sites/default/files/Size_Standards_Table.pdf and find your primary NAICS code in the first column.

When you have located your primary NAICS code in the size standard table, look at the entry in either the third or fourth column that corresponds with your NAICS code. The SBA has established size standards based on either average annual revenue (third column) or number of employees (fourth column).

If your NAICS code has a corresponding entry in the third column, your average annual revenue for the last three years must be less than the number in the column for your business to be considered small. For example, to determine if a plumbing firm with NAICS code 238220 qualifies as a small business, total the annual revenue of the business for the last three years and divide by three. If the result is less than $14,000,000 (the SBA established size standard for plumbers), the business would be considered a small business.

If your NAICS code has a corresponding entry in the fourth column, your average number of employees for the past twelve months must be less than the number in the column for your business to be considered small. For example, to determine if an envelope manufacturer with NAICS code 322232 qualifies as a small business, identify the average number of employees in the business for the past twelve months. If the result is less than 500 employees (the SBA established size standard for envelope manufacturers), the business would be considered a small business.

Self-certified Small Business with no more than 50 full-time employees at all locations

Total the number of people employed full-time by your business as of the date of this application. If you have more than one location, add the number of employees at all locations of the business to get a total number. If, after registering in this database, you hire additional people and exceed 50 full-time employees, return to your account profile and uncheck the box in front of this self designation to indicate that you no longer have 50 or fewer full-time employees.

Self-certified Women-Owned Business (WOB)/Women Business Enterprise (WBE) meeting U.S. SBA definition

A women-owned business/women business enterprise is one that is a least 51 percent owned by women, and whose management and daily business operations are controlled by one or more women.

Self-certified Small Disadvantaged Business (SBD) meeting U.S. SBA definition

A business which is small (by SBA definition) and at least 51 percent owned by one or more socially and economically disadvantaged individuals, and whose management and daily business operations are controlled by one or more of such individuals. Note: you must be both socially and economically disadvantaged to claim self-certified SDB status. Socially disadvantaged individuals include Black Americans, Hispanic Americans, Native Americans (i.e., American Indians, Eskimos, Aleuts, and Native Hawaiians), Asian-Pacific Americans (i.e., U.S. citizens whose origins are from Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Japan, China [including Hong Kong], Taiwan, Laos, Cambodia [Kampuchea], Vietnam, Korea, The Philippines, U.S. Trust Territory of the Pacific Islands [Republic of Palau], Republic of the Marshall Islands, Federated States of Micronesia, the Commonwealth of the Northern Mariana Islands, Guam, Samoa, Macao, Fiji, Tonga, Kiribati, Tuvalu, or Nauru); and Subcontinent Asian Americans (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal). Social disadvantaged status is based on ethnic background, not gender or other factors. Women, other than those included in one of the ethnic categories listed above, are not considered to be disadvantaged under this definition. Economically disadvantaged individuals include individuals with a personal net worth not exceeding $750,000, excluding the individual’s house and their ownership interest in the business.

Self-certified Veteran-owned Small Business (VOSB)

A business which is small (by SBA definition) and is at least 51 percent owned by one or more veterans, and whose management and daily operations are controlled by one or more veterans. The term “veteran” means a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable. Active duty is defined in 38 USC 101(21).

Self-certified Service-disabled Veteran-owned Small Business (SDVOSB)

A business which is small (by SBA definition) and is at least 51 percent owned by one or more service-disabled veterans and whose management and daily operations are controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran. The term “veteran” means a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable. Active duty is defined in 38 USC 101(21). The term “Service-disabled veteran” means a veteran with a disability that is service-connected. The term “service-connected” means with respect to disability or death, that such disability was incurred or aggravated, or that the death resulted from a disability incurred or aggravated in the line of duty during active military, naval, or air service.

Section 2: Third-Party Certification

Disadvantaged Business Enterprise (DBE) Certified by KY Transportation Cabinet or state-level transportation agency in another state
A business certified as a Disadvantaged Business Enterprise by the Kentucky Transportation Cabinet (KYTC) or a state-level transportation agency in another state. Additional information on KYTC DBE certification can be found at http://transportation.ky.gov/OBOD/.
Additional information on DBE Certification by state transportation agencies can be found at http://osdbu.dot.gov/DBEProgram/index.cfm.
HUBZone Certified by U.S. SBA
A business certified by the United States Small Business Administration as a Historically Underutilized Business Zone firm. Additional information on the HUBZone program can be found at http://www.sba.gov/hubzone.
8(a) Disadvantaged Business Certified by the U.S. SBA
A business certified as an 8(a) Disadvantaged Business by the United States Small Business Administration. Additional information on the 8(a) disadvantaged business development program can be found at http://www.sba.gov/content/8a-business-development-0.
Minority Business Enterprise (MBE) Certified by TSMSDC/NMSDC
A business certified as a Minority Business Enterprise by the Tri-State Minority Supplier Development Council or another affiliate of the National Minority Supplier Development Council. Additional information on TSMSDC MBE certification can be found at http://tsmsdc.com/get_certified/index.php.
Minority Business Enterprise (MBE) Certified by the Commonwealth of Kentucky
A business certified as a Minority Business Enterprise by the Commonwealth of Kentucky program operated by the Finance & Administration Cabinet’s Office of EEO and Contract Compliance. Additional information on Commonwealth of Kentucky MBE certification can be found at http://mwbe.ky.gov/Pages/eligible.aspx.
Minority Business Enterprise (MBE) Certified by Louisville Metro Human Relations Commission
A business certified as a Minority Business Enterprise by the Louisville Metro Human Relations Commission. Additional information can be found at http://www.louisvilleky.gov/HumanRelations/IWantTo/certificationapplication.htm.
Minority Business Enterprise (MBE) Certified by an agency/organization not listed above
A business certified as a Minority Business Enterprise by a government agency or private third-party organization not listed above.
Women Business Enterprise (WBE) Certified by WBENC
A business certified as a Women Business Enterprise by the Women’s Business Enterprise National Council. Additional information on WBENC’s WBE certification program can be found at http://www.wbenc.org/Certification/.
Women Business Enterprise (WBE) Certified by NWBOC
A business certified as a Women Business Enterprise by the National Women Business Owners Corporation. Additional information on WBE certification from the NWBOC can be found at http://www.nwboc.org/section_basic.
Women Business Enterprise (WBE) Certified by the Commonwealth of Kentucky
A business certified as a Women Business Enterprise by the Commonwealth of Kentucky program operated by the Finance & Administration Cabinet’s Office of EEO and Contract Compliance. Additional information on Commonwealth of Kentucky WBE certification can be found at http://mwbe.ky.gov/Pages/eligible.aspx.
Women Business Enterprise/Female Business Enterprise (WBE/FBE) Certified by Louisville Metro Human Relations Commission
A business certified as a Women Business Enterprise/Female Business Enterprise by the Louisville Metro Human Relations Commission. Additional information on WBE/FBE certification can be found at http://www.louisvilleky.gov/HumanRelations/IWantTo/certificationapplication.htm.
Women Business Enterprise/Women-Owned Business (WBE/WOB) Certified by an agency/organization not listed above
A business certified as a Women Business Enterprise/Women Owned Business by a government agency or private third-party organization not listed above.
Handicapped Business Enterprise (HBE) Certified by Louisville Metro Human Relations Commission
A business certified as a Handicapped Business Enterprise by the Louisville Metro Human Relations Commission. Additional information on HBE certification can be found at http://www.louisvilleky.gov/HumanRelations/IWantTo/certificationapplication.htm