Benefits and Requirements

As a certified small business you:

Qualify for a 5% bid preference on applicable state contracts.
Are eligible for benefits under the Prompt Payment Act, including higher interest penalties for late, undisputed invoice payments (interest penalties for construction firms are addressed under Public Contract Code 10261.5).
Are listed in the state's Internet Certified Firm Listing giving your firm more visibility and expanded business networking opportunities.

Small Business Eligibility Requirements

As a certified small business you:

Must be independently owned and operated.
Cannot be dominant in its field of operation.
Must have its principal office located in California.
Must have its owners (or officers in the case of a corporation) domiciled in California.
Together with your affiliates, be either:
1. A business with 100 or fewer employees, and an average annual gross receipts of $18 million or less over the previous three tax years, or
2. A manufacturer with 100 or fewer employees.

Must be independently owned and operated.
Cannot be dominate in field of operation.
Must have its principal office located in California.
Owners, Officers, Members/Managers, Partners must be domiciled in California.
Average $43 million or less in gross annual receipts over the last three tax years (including affiliates).
A business with 200 or fewer employees (including affiliates).

Certified DVBEs are eligible for the state's 3% DVBE Participation Program.
DVBE certification status strengthens business networking opportunities via OSBCR's Internet Certified Firm Listing.
Other governmental DVBE programs recognize the state's certification.

To be eligible for certification your business must meet the following criteria:

Must have at least 51% owned by one or more disable veterans.
Your daily business operations must be managed and controlled by one or more disabled veterans.
NOTE: The disabled veteran(s) who manages and controls the business is not required to be the disabled veteran business owner(s).
Your home office must be located in the U.S.
NOTE: The home office cannot be a branch or subsidiary of a foreign corporation, foreign firm, or other foreign based business.

Being a certified DBE expands your opportunities for participating in federally funded projects.
Certified DBEs are listed in the official California Unified Certification Program (CUCP) database used by prime contractors needing to fulfill DBE participation goal requirements.
This certification is recognized by other local agencies in California, other states, and private companies.

Eligibility Requirements to be a certified firm:

Must be at least 51% owned, or majority owned, by one or more socially and economically disadvantaged individual(s).
Must be a for-profit Small Business.
Personal net-worth of disadvantaged owner cannot exceed $1.32 million.
Owner’s duties must include managerial and operational control of the business.
Disadvantaged owner(s) must be a U.S. Citizen or permanent resident.
Average annual gross receipts for the firm’s previous three fiscal years cannot exceed $30.72 million.

For additional information on these certifications, or to start the application process, visit the following websites:

Statewide Campaigns