Whenever economically feasible, El Paso Electric strives to contract with small businesses owned by minorities, women, veterans and/or service-disabled veterans. In the state of Texas, such firms are collectively known as historically underutilized businesses (HUBs). El Paso Electric encourages its suppliers who qualify to obtain Small Disadvantaged Business (SDB) or HUBZone Certification from the U.S. Small Business Administration (SBA). We track and report on business done with companies that have SBA certification and on businesses owned by minorities, women and veterans. The sections below provide relevant descriptions and contact information.
Business Size Definitions
Whether your business can be classified as large or small depends on your North American Industry Classification System (NAICS) Code, and on either your total annual revenues or the number of employees. The NAICS has replaced the U.S. Standard Industrial Classification (SIC) system. Find your NAICS code at the top left corner of the United States Census Bureau website. Then do either of the following:
- Contact the SBA to help you determine if your business is recognized as large or small. They will ask for your NAICS code, and your relevant revenue or employment data.
- Go to sba.gov/size/. Click on NAICS 2002 codes and their size standards. This provides the qualifying data for small businesses.
U.S. Small Business Administration Certifications
The U.S. SBA has two types of certification: Small Disadvantaged Business (SDB) and HUBZone. The requirements for each of these are explained below:
SBA Small Disadvantaged Business Concern – A small business concern, owned and controlled by individuals who are both socially and economically disadvantaged, as defined by the Small Business Administration at 13 CFR Part 124, the majority of earnings of which directly accrue to such individuals. This term also means a small business concern that represents, as part of its offer that:
1. It has received certification as a small disadvantaged business concern consistent with 13 CFR part 124, Subpart B;
2. No material change in disadvantaged ownership and control has occurred since its certification;
3. Where the concern is owned by one or more individuals, the net worth of each individual upon whom the certification is based does not exceed $750,000 after taking into account the applicable exclusions set forth at 13 CFR 124.104(c)(2); and
4. It is identified, on the date of its representation, as a certified small disadvantaged business in the database maintained by the Small Business Administration (PRO-Net).
"Socially disadvantaged individuals" are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.
"Economically disadvantaged individuals" are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.
SBA HUBZone Small Business Concern
A small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administration. A HUBZone is a historically underutilized business zone located within one or more qualified census tracts, qualified non-metropolitan counties, or lands within the external boundaries of an Indian reservation.
For the classifications below, EPE accepts self-certification. By filling out this form and stating that all data in it is accurate, your company’s representative self certifies that the company qualifies for the appropriate classification.
Women-Owned Small Business Concern
A small business concern:
- That is at least 51 percent owned by one or more women, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and
- Whose management and daily business operations are controlled by one or more women.
Veteran-Owned Small Business Concern
A small business concern:
- Not less than 51 percent of which is owned by one or more veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more veterans; and
- The management and daily business operations of which are controlled by one or more veterans.
Service-Disabled Veteran-Owned Small Business Concern
A small business concern:
- Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and
- The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.
- "Service-disabled veteran" means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined in 38 U.S.C. 101(16).
Certifying Agencies and Organizations
SBA Small Disadvantaged Business (SDB) Certification
SBA HUBZone Certification
U.S. Small Business Administration
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