The New SBA Woman-Owned Small Business Program Explained

Leveling the Federal Contracting Playing Field

Congress has set a goal to help woman-owned small businesses (WOSBs) gain their share of the federal contracting market.  That is to say, a minimum of 5% of federal contracts should go to WOSBs.  However, WOSBs only received 4% of the $400+ billion contracts awarded annually well shy of the 5% statutory goal.

Some of the industries included in the list are 'Interior Design Services' (541410), 'Environmental Consulting Services' (541620), and 'Business Support Services' (561499).  This article can help you understand this program, or call Ember Accounting (425-373-6210 or Info@Ember-Accounting.com)  to help you determine if you are eligible and get certified with the program.

In an effort to address this shortfall and create a more level contracting playing field for women-owned small businesses, in late 2010 the U.S. Small Business Administration (SBA) announced the final rule that would implement the  WOSB program. Formally known as the Woman-Owned Small Business Federal Contract Program, the goals of the program were outlined by SBA Administrator, Karen Mills, in the agency’s press release:

“Women-owned businesses are one of the fastest growing sectors of the economy…That’s why providing them with all the tools necessary to compete for and win federal contracts is so important. Federal contracts can provide women-owned small businesses with the oxygen they need to take their business to the next level.”

While the WOSB Program was formally launched by the SBA in February 2011, it wasn’t until April 2011 that the federal procurement officials were able to set-aside contracts under the program.
So what is the WOSB Program and how can you take advantage of it? Here’s what you need to know and the steps you need to take to get your business certified to participate!

What is the WOSB Program?
The WOSB Program is a win-win for WOSBs and EDWOSBs (Economically Disadvantaged Women-Owned Small Businesses) and the federal government.  WOSBs now have an opportunity to compete for and win contracts specifically set aside for WOSBs.

There are over 300 industries (PDF) (in the contracting world these are known as NAICS codes) where WOSBs and EDWOSBs have been deemed “underrepresented” or “substantially underrepresented”. Contracting officers can do a WOSB or EDWOSB set-aside contracts in these industries if:

• There is reasonable expectation that two or more WOSBs/EDWOSBs will submit offers.
• The anticipated award price of the contract does not exceed $6.5 million in the case of manufacturing contracts and $4 million in the case of all other contracts.
• In the estimation of the contracting officer, the contract can be awarded at a fair and reasonable price.

Interested bidders can look on the Federal Business Opportunities web site to find federal government solicitations that may be set aside for WOSB or EDWOSBs

Are you Eligible for WOSB/EDWOSB Set-Asides?
To help determine your eligibility for the WOSB program you’ll need to be ask yourself a few eligibility questions:

1. Are you a small business as defined by SBA standards for your industry? –


2. Are you a woman-owned small business (WOSB)?
3. Does your business function within one of the over 300 industries (known as NAICS codes) for the WOSB program?

4. Are you an economically disadvantaged woman-owned small business (EDWOSB)?



There will also be two informational seminars hosted by Ember Accounting to help you understand the program and decide how to best proceed.
Call Ember Accounting (425-373-6210 or Info@Ember-Accounting.com) to help you determine if you are eligible and sign up for our informative seminar.

2011 standard mileage rates increase for Business Owners

The Internal Revenue Service announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

"This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices," said IRS Commissioner Doug Shulman. "We are taking this step so the reimbursement rate will be fair to taxpayers."

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.
While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.



The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

Opportunity to comment on certain employer provisions of ACA

The IRS just put out the following notice:

The IRS and Treasury Department are seeking feedback from small business owners who employ at least 50 full-time employees on the shared responsibility provisions included in the Affordable Care Act.

Under the Affordable Care Act, employers with 50 or more full-time employees that do not offer affordable health coverage to their full-time employees may be required to make a shared responsibility payment. The law specifically exempts small firms that have fewer than 50 full-time employees. This provision takes effect in 2014.

Additional Links:

• IR-2011-50
• Notice 2011-36

If you are interested in submitting coments, there are three ways to submit comments.

  

• E-mail to: Notice.Comments@irscounsel.treas.gov. Include “Notice 2011-36” in the subject line.  
• Mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2011-36), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
   
• Hand deliver to: CC:PA:LPD:PR (Notice 2011-36), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.

The deadline for comments is June 17, 2011.

Small Business Tax Credit

One of the first health care reform provisions to go into effect under the Patient Protection and Affordable Care Act is the new small employer health insurance credit for small businesses that provide health care coverage to their employees.



This credit is worth up to 35% of eligible insurance premiums. The IRS announced that it will be sending postcards to more than 4 million business and not-for-progit organizations to inform them of the new credit.



Eligibility Qualifications for 2010:

• Have a maximum of 25 full time employees for the year*


• Pay no more than $50,000 annual wage per full time employee


• Pay at least 50% of the health insurance premiums on a qualifying plan.

* Full time employees are determined by the IRS term FTE (Full Time Equivalent) Employees. For purposes of the small business credit, FTE employees means a number of employees equal to the number determined by dividing:

1. The number of total hours of service for which wages are paid by the employer to nonseasonal employees during a taxable year, by


2. 2080


3. The result is rounded down to the next whole number to determine the number of FTE employees.

Do Not count more than 2080 hours for any employee, and don't count any employees that fall into the following categories:

• Business owners - including: sole proprietors, LLC members, 5% or more owners in a C corporation, partners in a partnership, 2% shareholders in an S corporation


• Family members of the individuals listed above


• Employees that are considered seasonal employees.

We will discuss this new tax credit in detail in our next post.