I agree 100% with that Miscreant, at least as it applies to SBA loans and the minimal oversite given to the probability of success given the proposed business model.
Unfortunately, these "set aside" projects are a government fact of life, and there is work that a legitimate, competitive, and competent contractor simply can't bid because he's a white male. Somebody is going to do the work.
Here in our great state, all of the Ohio School Facilities Commission projects, and I believe all other state projects, now require a minority participationp percentage, based upon the minority population of the project locale. There are minority companies that do absolutely NOTHING except act as pass-through supplier, while marking up the materials 3% for sending you an invoice with their name on it.
If I do a state project, I have to order my materials from my regular supplier. The supplier does all the ordering and shipping arrangements, sees to it that delivery occurs, then instead of sending me a bill, they send the bill to the minority set-aside "contractor", who marks it up his 3% and sends me a bill. It's an absolute crock>>>
About 15 years ago the SBA announced that they had a program allowing Women and minorities to borrow money. They didn't see my logic that white males are a minority and everybody else is the majority.
A friend of mine got a loan and opened an ice cream shop. It lasted 6 or 8 months. She foolishly opened the shop around the corner from a shop that serves the best ice cream most people have ever had. The shop around the corner could have qualified for the minority loan if they had just been starting out.
The moral of the story is that the ones that provide the most value will win regardless of race or sex. These minority set asides are crutches that will be your downfall.
Focus on providing value and you will flourish. There will always many oppurtunities to lose focus, this is yet another one.
.>>>
My GM is currently in the process of trying to set up a DBE (Disadvantaged Business Enterprise), as they are referred to in Ohio. There's also WBE, MBE and maybe another or two (Woman and Minority, respectively). The program is administered by the state of Ohio, and requires that you be in business at least 1 year and demonstrate a legitimate business model producing work. It is certainly not as easy as we thought it would be.
His spinal cord was injured in a swimming accident more than 20 years ago and he is very limited in mobility. The guy get's his butt out of bed and puts forth 4 times the effort to work every day than the average man. If anyone should have been granted a certificate it is him.
I suspect every state is different in what is required. If you've already been operating as legitimate business for more than a year, it should be fairly easy, at least it would be here. I would suggest obtaining the assistance of a corporate attorney that is exerienced in DBE enterprises.>>>
I am a minority,a roofing contractor with workmenscomp and liabilty insurance for roofing. :woohoo:>>>
msshottet,
It sounds like you are in need of a lot of basic beginning business advice.
Try contacting S.C.O.R.E. for a free mentoring and advice association sponsored by the Government. It is staffed by Retired Executives that volunteer and I hear great things about the knowledge that they possess and make available to others.
They should be in Sync with all of the Government programs too.
Also, when you post a question, you should follow up with some of your thoughts to further expand the thread topic and generate more follow-up ideas, otherwise the thread dies out.
Ed>>>
I'm in the process of doing that right now. I know one of the first steps are getting CRR Certification which is the codes for the industry. Also check with PTAC and small business administration they will help you step by step. When I get back to my office on Monday I will send you some links. Good Luck!>>>