Minority Business

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Disadvantage Business Elgibility Requirements: Advantages and Disadvantages of Programs


Eligibility Requirments
Participation in programs design to enhance and support local small disadvantage businesses in the Washington, D.C. metropolitan region in procuring government contarcts for capital projects have a number of criterions businesses must meet. A business wishing preference in procuring local government contracts must be identified as “A bona fide disadvantage enterprise” (Equal Opportunity for Local, Small, And Disadvantge Business Enterprise 1988, hereafter LSDBE). The Office of Local Business Development (OLBD), currently list 788 businesses (See partial list in Table 1.0) that fall into the category of local small disadvantage enterprise (OLBD 2004).
What is a “disadvantaged business enterprise”? What elgibility requirements must businesses meet to participate in the programs offered under the Act? And, what are the associated benefits in being disignated as a disadvantage business?
A “disadvantged business enterprise” is a “local business” that is econonomically disnefrachise and whose capacity to obtain capital and credit are limited due adversity, such as, “prejudice or bias” not to mention construction contracts for capital projects. This type of disenfrachisement has no uniqueness regarding the fitness and capabilities of the small enterprise—Section 2-217.01 (3), (4) of the D.C. code. The “small business enterprise” in Section 2-217.01 (9), annual gross receipts must not exceed that, which is prescribe in the provision (See Table 1.1) for three consecutive years preceeding its certification as a disadvantage enterprise (LSDBE).
Not every business in the Washington, D.C. qualifies as a small disadvantage enterprise. To test whether a company or business meet the LSDBE rule , four out of five of the principle criteria must be met:
Ø The principal business office must reside in Washingt...