8(a) Business Development HUBZone Programs and Affordable Care Act (ACA)

Transcription

1 8(a) Business Development HUBZone Programs and Affordable Care Act (ACA) Jim Kidd & Yuri Dyson Business Opportunity Specialists Portland District Office 1

2 U.S. Small Business Administration Created in 1953 to aid, counsel, assist and protect small business 28 million small businesses in the U.S. 335,000 small businesses here in Oregon District Office covers Oregon and SW Washington sba.gov/or Help small businesses through Counseling, Capital, Contracting, Advocacy and Disaster Assistance 7/31/

3 Small Business Counseling and Technical Assistance Counseling, Mentorship and Technical Assistance Nationwide network of Resource Partners 21 Small Business Development Centers 5 SCORE Chapters Women s Business Center Veterans Business Outreach Center 739,616 clients were counseled and trained across the country more than 9,000 individuals in Oregon and SW Washington 7/31/

4 Small Business Contracting World s largest purchaser of goods and services amounting to $1.45 billion being spent in Oregon Congressional mandate of 23% to small business In the district, 42% totaling $600 million SBA Certifications sba.gov/contracting WOSB, SDVOSB, VOSB, 8(a) Business Development Program, HUBZone 7/31/

5 Small Business Capital Not a direct lender guarantees portions of loans for lenders $30.3 billion supporting 609,437 jobs In the district, back to back record years in lending 835 loans totaling $428 million 60 active lenders in the district Technical assistance and support with the loan process 7/31/

6 The Affordable Care Act was enacted on March 23, 2010 Before ACA, Small Employers Faced Many Obstacles to Covering Workers Too few choices Higher premiums and unpredictable rate increases Higher rates for groups with women, older workers & those with chronic health concerns or high-cost illnesses, in most states Waiting periods or no coverage for individuals with Pre-Existing Conditions Today, under ACA, insurance companies: Face limits on administrative spending Most insurers must now spend at least 80 percent of consumers premium dollars on actual medical care Must disclose and justify proposed rate hikes of 10% or more, which states or the federal government may review 7/31/

7 The Affordable Care Act Reduces Premium Cost Growth and Increases Access to Affordable Care Starting in 2014, insurance companies: Can t charge higher rates or deny coverage because of a chronic or pre-existing condition Can t charge higher rates for women, and face limits on charging additional premiums for older employees Will pool risks across small groups creating larger pools like large businesses Must not have annual dollar limits on coverage Must offer plans that provide a core package of Essential Health Benefits equal to typical employer plans in the state Starting in January, 2014 small employers will have a whole new way to shop for private health insurance through the new Health Insurance Marketplace 7/31/

8 Understanding How the Affordable Care Act Affects You, Your Business, and Your Employees Is my business, or one of my employees, eligible for a tax credit? Am I, or my employees, eligible to purchase plans through the new Health Insurance Marketplace? How do I know if I am subject to the employer shared responsibility provisions that take effect in 2015? What does it mean if I have 50 or more employees and am subject to the employer shared responsibility provisions? 7/31/

9 Small Business Resources for the Affordable Care Act sba.gov/healthcare business.usa.gov/healthcare healthcare.gov coveroregon.com wahbexchange.org 7/31/

10 8(a) Business Development & HUBZone Programs Jim Kidd & Yuri Dyson Business Opportunity Specialists Portland District Office 10

11 U.S. Small Business Administration Portland District Office 8a Business Development Program Small Disadvantaged Business Program HUBZone Empowerment Contracting Program 7/31/

12 What is the 8(a) Business Development Program? Section 8(a) of the Small Business Act. A business development program created to assist small disadvantaged businesses compete in the American economy and access the federal procurement market. 7/31/

13 Eligibility Criteria 2 Years in Business A Small Business Socially & Economically Disadvantaged U.S. Citizen 51% or More Ownership Good Character 7/31/

14 SBA May Waive The Two Year Rule If: Have substantial and demonstrated business management experience; Demonstrated technical expertise; Adequate capital to carry out its business plan; Successful performance on contracts from governmental and nongovernmental; Ability to obtain personnel, facilities, equipment, and any other requirements needed to perform such contracts. 7/31/

15 Firms must be small based on their Primary NAICS Code, including affiliates Size is determined either by: average 3 years revenues # of employees (manufacturers, dealers, wholesalers) See 13 CFR 121 Size Regulations or visit our website: 7/1/

16 Socially Disadvantaged Individuals: persons who have been subjected to racial or ethnic prejudice or cultural bias because of their identities as members of groups, without regard to individual qualities. 7/31/

17 Individuals are presumed to be socially disadvantaged if they are a U.S. Citizen and a member of one of the following groups: Black American Asian Pacific American Hispanic American (includes individuals of Spanish & Portuguese descent) Native American Subcontinent Asian American 7/1/

18 Persons not members of designated groups must: Establish their case by a preponderance of the evidence. What is Preponderance? Generally, preponderance is evidence of a quality and quantity which leads the decision maker to objectively conclude that the existence or truth of the facts asserted is more probable than not. 7/31/

19 Determining Factors of Preponderance Disadvantage may stem from race, ethnic origin, gender, physical handicap, long term environmental isolation, or other similar causes; Must have personally suffered disadvantage in the United States; Must be substantial & chronic; Must have negatively impacted on business advancement 7/31/

20 Economically Disadvantaged Economically Disadvantaged individuals are socially disadvantaged persons whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit. 7/31/

21 Net Worth Criteria After excluding the individual s equity in the firm and equity in the primary residence, net worth may not exceed $250, Assets Equity in Business Equity of Primary Residence Retirement accounts having penalty for removal Net Worth (Not to exceed $250,000) 7/1/

22 Ownership, Control & Management Whether a company is structured as a Partnership, Limited Liability Corporation, Corporation, or Sole Proprietor, At least 51% must be owned and controlled by the disadvantaged person(s). 7/31/

23 The Disadvantaged Individual must: Hold the position of President or Chief Executive Officer, Managing Partner or LLC Managing Member Be the highest compensated individual Have managerial/technical expertise Have the ability to: Hire and Fire Set Policies Commit firm to contracts Control Budget and Financial Disbursement Devote Full time to the operation 7/31/

24 Term of Participation START = date of approval Year Year Developmental Stage Transitional Stage Continuation in the program is dependent on the firm s continuing eligibility as a socially and economically disadvantaged owned/operated firm and continued compliance with the 8(a)BD participation agreement. 7/31/

25 Benefits of the 8(a) Business Development Program Business Development Assistance Sole Source & Competitive 8a Contracting Opportunities Mentor/Protégé Opportunities Joint Venturing Opportunities 7/31/

26 Where to Send Application APPLICATIONS ARE ACCEPTED ON 7/31/

27 QUESTIONS? 7/1/

28 Small Disadvantaged Business Program 7/31/

29 What is the Small Disadvantaged Business Program? Program created to assist small disadvantaged businesses benefit in Federal procurement and subcontracting with Prime Contractors. SELF CERTIFIED 7/31/

30 Eligibility Criteria A Small Business Socially & Economically Disadvantaged U.S. Citizen 51% or More Ownership Good Character SELF CERTIFIED 7/31/

31 Eligibility Exceptions for SDB Personal Net Worth: less than $750,000 Full Time Devotion To Business: Not Required 2 Years in Business Requirement: Waived 7/31/

32 Benefits of the SDB Program Federal Agencies & Prime Contractors have established goals to afford subcontracting opportunities to SDB firms. Large Federal Prime Contractors with subcontracting plans will receive credit when using certified SDB s as subcontractors. 7/31/

33 HUBZone Empowerment Contracting Program 7/31/

34 What is the HUBZone Empowerment Contracting Program? Created to stimulate economic development and create employment opportunity in urban and rural communities by providing contracting preferences to small businesses. 7/31/

35 Eligibility Criteria A Small Business; Owned& controlled by a U.S. Citizen Principal office must be located within a HUBZone, which includes lands on federally recognized Indian reservations; At least 35% of its employees must reside in a HUBZone 7/31/

36 Are You In a HUBZone? 7/31/

37 Benefits of the HUBZone Empowerment Contracting Program Federal contracting opportunities Sole Source, Competitive, Full & Open, 10% Preference, and subcontracting opportunities. Eligible HUBZone firms may qualify for SBA guaranteed surety bonds on construction and service contract bids. Firms in federal empowerment zones and enterprise communities may also benefit from various tax incentives. Large Federal Prime Contractors with subcontracting plans will receive credit when using certified HUBZone subcontractors. 7/31/

38 Apply for These Programs On Line 7/31/

39 QUESTIONS? 7/1/

40 We Want You To Grow and Succeed Jim Kidd (503) James.Klitzke Yuri Dyson (503) SW Second Avenue Suite 950 Portland, OR Telephone: Visit us at 7/31/