Small Business Reserve Program
The Small Business Reserve Program (SBR) became effective October 1, 2004 and requires that certain State agencies structure their procurement process so that at least 10% of the total procurement dollars are spent with qualified small businesses. The overall goal of the State of Maryland’s, Small Business Reserve Program is to increase economic opportunities for small businesses. The Maryland Stadium Authority (MSA) is committed to meeting, and possibly exceeding, this goal. MSA will accomplish this goal by insuring that competition with only other qualified small businesses occurs for any procurement designated as a SBR. As a result, any SBR procurement will be awarded to only a small business.
Only a qualified small business may participate in a Small Business Reserve Procurement. Once a solicitation has been designated for a small business reserve, only bids or proposals from qualified small businesses will be accepted.
What is a small business?
A small business is a business, other than a broker, that meets the following criteria:
- the business is independently owned and operated
- the business is not a subsidiary of another business and the business is not dominant in its field of operation
- the wholesale operations of the business did not employ more than 50 persons
- the gross sales of the business did not exceed an average of $2,000,000 in its most recently completed three fiscal years *
- the retail operations of the business did not employ more than 25 persons
- the manufacturing operations of the business did not employ more than 100 persons
- the service operations of the business did not employ more than 100 persons
- the construction operations of the business did not employ more than 50 persons and the gross sales of the business did not exceed an average of $7,000,000 in its most recently completed three fiscal years.
* If a business has not existed for three years, the gross sales average is computed for the period of the business’s existence. For newly formed businesses, the determination will be based upon employment levels and projected gross sales.
How will a business know if a solicitation is selected for a small business reserve?
The solicitation will clearly state that a small business reserve applies.
Can a non-profit organization qualify as a small business?
No, only for-profit businesses can apply to be qualified as a small business.
Is a small business the same as a minority business?
No, but a business can be both if it has been qualified as a small business and has been certified by the Maryland Department of Transportation’s (MDOT) Minority Business Enterprise Program as a minority business.
For more information about the Minority Business Enterprise Program visit http://www.mdot.state.md.us/MBE_Program/overview
To apply for certification as a qualified small business, the Department of General Services (DGS) has established an online self-certification process. To apply for Small Business Reserve certification, visit the following website:
click on the “Small Business Reserve” icon
The web site also provides additional information on the SBR Program.
The Small Business Reserve program staff is available to answer any questions. Contact information for the SBR Program is listed below:
Director of External Affairs
Department of General Services
301 West Preston Street, Suite M9
Baltimore, Maryland 21201