Small Business & DVBE FAQs

Source: http://www.pd.dgs.ca.gov/default.asp?mp=sbop/sbfaq.asp

How does a small business qualify to do business with the State of California?

The prequalification process allows your company to register for the specific commodities that you provide. Once you are prequalified, your company will automatically receive bidding opportunities, via the mail, with specific information necessary to successfully bid.

What are the advantages of prequalifying?

Suppliers who go through the process and become prequalified will have automatic access to commodity bid opportunities. To find bid opportunities for services, contact the California State Contracts Register.

How do I know if I qualify as a small business?

Assembly Bill 2505, sponsored by Assembly Member Olberg, establishes a clear, uniform definition of "small business" in statute for use in the state's small business program. The small business definition requirements are listed below:

  • An independently owned and operated business.
  • Not dominant in its field of operation.
  • The principal office is located in California.
  • The officers are domiciled in California.
  • Together with affiliates is either:
  • A service, construction or non-manufacturing business with 100 or fewer employees, and average annual
  • gross receipts of ten million dollars ($10,000,000) or less over the previous three years, or
  • A manufacturer with 100 or fewer employees.

The definition of a "manufacturer" refers to a business that is both of the following:

  • Primarily engaged in the chemical or mechanical transformation of raw materials or processed substances into new products.
  • Classified between Codes 2000 to 3999, inclusive, of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition.

Is there electronic and/or Internet access to bid opportunities?

Internet opportunities are available for service contracts through the Office of Small Business Certification and Resources web site. The publication is called the California State Contracts Register.

Where can I go to access further information on how to develop my small business?

The California Small Business Development Center (SBDC) Program was formally established in 1988 in the Office of Small Business under the California Technology, Trade & Commerce Agency to spur the expansion and development of California small businesses. To help entrepreneurs get a solid start, a network of locally based centers provide one-stop business counseling, training and links to other economic development resources in all California counties. The California Technology, Trade & Commerce Agency, the U.S. Small Business Administration and the Chancellors Office of California Community Colleges provide major funding for the network.