Strong Growth in Southern Indiana Establishments

By Dr. Uric Dufrene, Sanders Chair in Business and Professor of Finance, Indiana University Southeast

The Covid-19 pandemic has led to a proliferation of self-employment and small business formation.   In a recent Wall Street Journal article (In the Covid Economy, Laid-Off Employees Become New Entrepreneurs – WSJ), the introductory sentences sum up the situation quite well, “The coronavirus destroyed jobs.  It also created entrepreneurs.”    The article cites Census Bureau data that applications for businesses with no employees surged 32% in the first 9 months of 2020.   While we do not have access to non-employer business data at the county level just yet, we do have establishment and payrolls data at the county level as recently as the second quarter of 2020.

Whenever we are talking about the state of the economy, or the general outlook, the focus is usually on the number of jobs.   For example, the monthly employment report released by the Bureau of Labor Statistics is probably the most closely watched economic indicator.   Equity market reaction can be quite volatile when the report is released on the first Friday of the month.

In reviewing the latest Quarterly Census of Employment and Wages data, I did notice an interesting pattern developing, and one that is positive for Southern Indiana.  Rather than focus on the number of jobs, we are going to examine the change in the number of establishments across Southern Indiana.  In this case, establishments include firms that have employees.    These data do not include self-employed entrepreneurs mentioned in the Wall Street journal article, but we are able to get a pulse of overall economic development.   As a region, are we seeing more net business formation, or are business closures outpacing any new business development?

In the second quarter of 2020, the five counties (Clark, Floyd, Harrison, Scott, and Washington) of Southern Indiana had the second highest, among all Indiana metro areas, in the percentage change in business establishments from the previous year.    In absolute terms, Southern Indiana added 135 establishments from the previous year during the second quarter and added 203 in the first quarter.   On a percentage basis (this allows us to control for the metro area size), the five counties of Southern Indiana (2.4%) were outpaced only by the Lafayette-West Lafayette (4.8%) metro region.

When we examine all of 2020, both the first and second quarters combined, we see a similar result.   The average percentage change from the previous year, in new establishments, for Southern Indiana (2.9%) was the second highest among all Indiana metro areas.  Like the 2nd quarter of 2020, Lafayette-West Lafayette (5.7%) had the highest gain for all of 2020.

Going back just a bit further, we see a similar pattern.   Over the past 4 quarters, Southern Indiana had the second highest percentage change (2.5%) in establishments from the previous year.   Lafayette-West Lafayette had the highest (4.1%).   As a comparison, nine other metro areas across Indiana had either negative or flat changes in establishments over the same time-period.  So, a gain of 2.5% is no small feat!

What does all this mean for Southern Indiana?  In a nutshell, this is good news.    A region can only sustain long-term economic development if business formation is outpacing business deaths.   New establishments replace old establishments, and investment, both from the outside and within, signal an overall robust economic development environment.   In a recent article in the Southern Indiana Business Source (November-December 2020), I documented the strong net migration to Southern Indiana.  These data combined with the recent activity on the change in establishments send positive signals about the growth trajectory of Southern Indiana.

Data source:  STATS Indiana Quarterly Census on Employment and Wages.

 

Carmen Moreno Rivera

Louisville-Based Facilities Management Services, pbc Names New President

Louisville, KY, January 14, 2021

FMS, pbc, a Louisville-based janitorial service provider, announced that Carmen Moreno-Rivera has been named as President. Scott Koloms, who has served as President since 2001, will continue as CEO effective January 2021. Mrs. Moreno-Rivera’s employment will commence January 2021.

Moreno-Rivera has over 18 years of management experience, including strategic planning, performance management, systems design, and projects focused on community impact. Most recently, she served as Chief of Performance Improvement for Louisville Metro Government. Prior to that, she was the Air
Region Operational Excellence Manager at UPS.

Moreno-Rivera’s experience in the public sector aligns well with FMS’ social impact efforts. “My position at Louisville Metro Government allowed me to work with some dedicated public servants to develop and execute strategy for the community’s benefit, and I hope to use those experiences to be successful at FMS,” she said.

“Carmen is going to bring new strength to FMS’ operational systems. We’re especially excited to see how her passion for people and community bolsters FMS’ existing impact efforts. She’s definitely the right leader for our company,” said Koloms.

“I’m going to push our leaders to think differently about how we serve our employees and the communities in which we work,” said Moreno-Rivera. “And, I hope to push other leaders in the private sector to do the same for their organizations and employees because it’s going to take all of us to improve
the communities in which we live, work and serve.”

Moreno-Rivera serves on the board of Louisville Girls Leadership, Kentucky Science Center, and the University of Louisville’s Organizational Leadership and Learning program. She holds a Bachelor of Science degree in Aerospace Engineering from the University of Tennessee, Knoxville, a Master of
Science in Management from Indiana Wesleyan University, a Master’s Certificate in Business Analytics, a Six Sigma Green Belt Certification, a Core Consulting Skills Certification and an Applied Project Management Certification.

FMS, pbc has been named a top 100 Impact Company from 2019-2021, is B-Corp certified, and a registered public benefit corporation. This year, FMS ranked #70 out of the top 150 impact companies in the world.

FMS, pbc has been serving Kentucky and Indiana facilities for over 21 years with current employment of over 850 team members. Its headquarters are in the Portland neighborhood, with satellite offices in Shelbyville, Lexington, and New Albany.
#####

IQPack, LLC, Plans Expansion of Operations in New Albany, Ind.

IQPack, LLC, Plans Expansion of Operations in New Albany, Ind.

Company Estimates Potential Hiring of 55 People at Four Times the Floyd County Average Wage

New Albany, Ind. (January 8, 2021) – Representatives of One Southern Indiana (1si), the chamber of commerce and economic development organization for Clark and Floyd counties, and IQPack, LLC, a packaging and supply-chain solutions company based in New Albany, Ind., will appear before the city redevelopment commission on January 12, 2021. The company has plans for an expansion of its current operations at 3000 Technology Avenue to accommodate a new two-year software development contract.

Company leaders will request consideration for incentives in the form of training reimbursement funds up to $10,000 annually for up to three years.  Should the commission offer incentives, they would be contingent upon Floyd County citizens being hired.  If approved, the $1.17-million-dollar project will require the hiring of more than 50 high-skilled employees, such as packaging engineers, supply-chain experts and software developers with an average wage approximately four times the Floyd County average hourly wage.

“There is a major need for what we do, as many e-commerce and manufacturing companies are struggling to optimize their packaging operations and shipments to support more efficient supply chains. This has been a consistent problem in the industry for generations,” said John Moore, co-Founder and director of packaging for IQPack.

“Packaging is the vital thread connecting all parts of an operation such as materials cost, handling and storage, labor productivity, transportation cube and sustainability. We bring unique expertise, a laser focus, and passion to harness the value of packaging innovation, along with the proper tools to ensure a positive impact in all these areas,” said Moore.

New Albany Mayor Jeff Gahan said, “While the Midwest is known as the manufacturing hub of the nation, the City of New Albany is also an ideal location for technology-driven companies looking for a smart, highly-skilled labor force.  The planned expansion of IQPack illustrates this point perfectly, and the City of New Albany will continue to assist the company in its efforts to grow and succeed.”

The Indiana Economic Development Corporation offered IQPack up to $1.5 million in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning the company is eligible to claim incentives once Hoosiers are hired.

“With a strong logistics industry and thriving tech ecosystem, Indiana offers companies like IQPack the perfect location to scale up their operations,” said Indiana Secretary of Commerce Jim Schellinger. “We’re excited to continue supporting IQPack’s growth in New Albany and grateful for the company’s commitment to expanding its operations and creating high-wage career opportunities in Southern Indiana.”

IQPack is known for its unique, performance-based operating model, Packaging-as-a-Service, or PaaS.  The model is anchored in industry-leading packaging solutions that drive positive effects across customers’ total cost of supply chain.  Services include comprehensive, diagnostic packaging innovation combined with a team of packaging, supply chain and logistics experts. IQPack also utilizes powerful data analytics tools through its PACKCHAIN technology, which provides key operational assessments, on-going solution management, and operational dashboards for performance tracking.

“We’re creating solutions for our customers that drive predictable and sustainable results, year after year. We utilize many key tools to ensure packaging optimization brings real value to our customers’ material spend, labor efficiency, parcel and load spend management and sustainability goals such as reducing waste, returns, and damage.” said Doug Jones, IQPack’s co-founder and chief operating officer.

“It’s time to elevate the expectations and performance of packaging across the entire industry. Packaging material costs are important, but they represent only nine percent of the total supply-chain cost for our customers. Our PaaS model also attacks the other 91 percent of costs, and it reflects very positively on the customer experience, service metrics, and profitability of large shippers,” said Moore. “This expansion is the next stage of IQPack’s evolution, and we’re excited about the possibility of doing it here in New Albany.”

John Moore founded IQPack in 2013. The company recently went through a rebranding effort which included changing the name of the company from Packaging and Logistics Solutions. The new name and brand better reflect the innovative, technology-savvy approach the company is taking.

“The expansion of IQPack would be a big win for the community and a great way to start 2021,” said 1si President and CEO Wendy Dant Chesser. “The growth and current success of this home-grown, high-tech company send a signal to other interested businesses that Southern Indiana is the right location for high-wage, high-skilled operations. We congratulate IQPack on this fantastic news and thank them for considering New Albany for these extremely desired career opportunities.”

All business inquiries for IQPack must be directed to the company’s website at www.theiqpack.com.

About IQPack, LLC

 IQPack, LLC, which was founded by John Moore as Packaging and Logistics Solutions in New Albany, Indiana, in 2013, has grown and flourished as a high-tech, packaging solutions company with a reputation for innovation and customer satisfaction. Guided by seasoned leaders of the packaging and global operations industries, our team of best-in-class packaging, logistics, and data analytics experts have a genuine passion to live our core values of integrity, innovation, customer focus, community, and family. IQPack, LLC, developed a unique “Packaging-as-a-Service,” or PaaS, model, which is designed to utilize progressive packaging optimization solutions that drive cost savings and operating efficiencies across 100-percent of our clients’ supply chains. The company is also known for PackChain, a proprietary, data analytics software platform that supports the PaaS model, providing objective analysis, broad solution features sets and a performance tracking capability for all key cost centers within our customers total supply chain operations. Given the steady growth in the company’s customer base of e-commerce and manufacturing, the team at IQPack, LLC, is focused on continuing its track record of success in meeting and exceeding the goals of its clients. For more information, visit www.theiqpack.com.

About One Southern Indiana:

One Southern Indiana (1si) was formed in July of 2006 as the economic development organization and chamber of commerce serving Clark and Floyd counties. 1si’s mission is to help businesses thrive in the Southern Indiana and metro area.

Since its inception, the organization has evolved to include a three-prong approach to serve its members and investors. Business Resources, as the chamber side of the organization, encompasses membership, signature events and programs which support and encourage business growth; Economic Development works to grow the regional economy through the attraction of new commerce and assists with retention and expansion of existing businesses; Advocacy supports businesses at the government level by engaging in the initiatives to preserve, protect and promote a business friendly environment free of obstacles to growth and development of commerce. For more information on One Southern Indiana, visit www.1si.org

 Media Contact:

IQPack, LLC

https://theiqpack.com/contact-iqpack/

 

One Southern Indiana

Suzanne Ruark

Director, Marketing and Communications

812.206.9050

suzanner@1si.org

Thank You for Renewing Your Membership | December 2020

One Southern Indiana would like to thank the following businesses for renewing their membership during the month of December 2020.

Quarter Century Club (25 Years or More) Member Since
Indiana-American Water Company 1967
Ivy Tech Community College 1970
PC Home Center 1978
Libs Paving Co., Inc. 1990
L & D Mail Masters, Inc. 1992
USI Insurance Services, LLC 1994
Ten to 24 Years
Hope Southern Indiana, Inc. 1998
Wiggam Lumber, Inc. 1999
Kentucky Financial Group 2002
One Vision Credit Union 2002
Silver Creek Leather Co., LLC 2003
LL&A Interior Design 2005
Storage Express 2007
CASI Community Action of Southern Indiana, Inc. 2007
Peyton’s Barricade & Sign Co. 2008
Clark and Riggs 2011
Five to Nine Years
Weatherall Co., Inc. 2012
Schimpff’s Confectionery 2014
Personalized Merchant Services, LLC. 2014
Expedia Cruises, New Albany 2015
Winston Industries 2016
Two to Four Years
King’s-Quality Restoration Services LLC 2017
The Breakwater 2017
Tree of Life Family Birth Center 2018
Red Roof Inn – Georgetown 2018
A Class Act DJ’s 2018
Heine Brothers’ Coffee 2019
The Refinery 2019
American Health Network 2019
Blacksmith Iron Works 2019
Sprechers Automotive 2019
Chicken Salad Chick 2019
One Year
Fibrenew Southern Indiana 2020
Excel Excavating, Incorporated 2020

Covid Impact Hiring and Retention Strategies for 2021 and Beyond

by Tony Waterson, Executive Director, Southern Indiana Works & WorkOne Southern Indiana

Candidates seeking employment in today’s workforce want more than just a paycheck. Their experiences during the application and interview process can impact their decisions to accept or reject an offer with a company.

A recent Job Seeker Survey by Engage-to-Excel found that candidates are seeking an easy, straightforward application process, timely responses from recruiters and a career site that answers questions, with a high preference for a mobile process. Within the next five years, a high majority of internet users will access the web exclusively by smartphone. Therefore, a mobile application process and mobile career sites should be a top priority. Mobile career sites and applications will be key to connecting with the next generation of workers. “More than 90% of candidates indicate that a positive interview experience has the power to influence their decision regarding a job.” Developing an engaging candidate experience can provide a competitive edge when recruiting top talent.[1]

Jobseekers consider the reputation of a company as an employer prior to applying for a job and are interested in company culture, environment and values. Your ability to recruit for skilled talent will depend highly on the ability to communicate and promote your company culture.

Companies are now referring to abilities such as critical thinking, leadership, problem solving, communication and teamwork as essential skills, which sometimes take precedence over hard skills that can be learned on-the-job. New technology trends are anticipated to permanently alter the workforce. Workers with teamwork and critical thinking skills that can swiftly adapt to change will advance in their industries, while individuals rooted deeply in traditional methods and technologies are anticipated to fall behind. These essential skillsets are assets that differentiate human workers from artificial intelligence.

Advancements in technology and artificial intelligence will be significant in recruiting processes, but companies must remain aware of the human factors involved for engagement and retention success.

Manufacturers are indicating coronavirus has impacted how they will seek to operate for the future. Businesses are reporting the pandemic has accelerated industry trends such as evaluation and increasing automation, assessments of supply chains, conversion of additional manual-to-digital processes and evaluation of the workforce skills. Covid-19 has also increased the focus on how important business emergency and disruption planning is to a business operation.

This acceleration will require strong talent and will make it imperative to have employees aligned with the right roles. It will be more important to encourage engagement between younger talent and seasoned professionals with industry knowledge. Younger individuals will have a deeper understanding of technology, which blended with industry knowledge, can help to drive new innovation and ideas.

Key areas to focus on are the importance of upskilling current workforce in technology skills and using work-based learning models to help new talent get more industry knowledge, enhancing their effectiveness. Many companies are finding it easier to grow top talent rather than to rely on outside recruitment. Focusing on developing your workforce and creating clear career pathways will ensure you have resources to diversify talent, build stronger leadership and be better positioned for the future.

For more information on work-based-learning, apprenticeships, and career pathway models, contact Southern Indiana Works Business Services Division at 812-941-6436.

Southern Indiana Works is the Regional Workforce Development Board that manages the Talent Development System in Clark, Floyd, Harrison, Scott, Washington and Crawford Counties in Indiana. WorkOne Southern Indiana provides services to enhance the skills of job seekers and help to connect them with employers in the region that need great employees.

[1] Engage2Excel 2020 Recruiting Trends
https://www.engage2excel.com/wp-content/uploads/2019/05/Engage2Excel_Job_Seeker_Survey_Part_2-WEB.pdf

Survey Results: Employers Expand Efforts to Attract, Retain Talent; Update on COVID-19 Impacts

Employers are aggressively taking proactive steps to try and solve some of the workforce challenges that have been prevalent in recent years. The findings are illustrated in the 13th annual employer workforce survey from the Indiana Chamber and its Institute for Workforce Excellence®.

Skillful Indiana was the lead sponsor of the survey, with support from Amatrol and WGU Indiana. There were 937 responses (during a two-week period in mid-September) across a broad range of industries.

“For years, we have heard leaders in the business community lament the lack of skilled employees to meet their workforce needs,” says Indiana Chamber President and CEO Kevin Brinegar. “It appears they are now tackling the issue head-on, offering additional opportunities to attract talent for today and tomorrow.”

To view a summary of the survey, click here.

MESA Welcomes Hoosier Girl? Pie to Incubator Ready, Set, Prep’d

A new incubator has signed up at MESA, A Collaborative Kitchen.  As the second Incubator business Ready, Set, Prep’d, sets to prepare for it’s own brick and mortar, MESA sets its eye on a third successful partnership with, Hoosier Girl? Pie (HGP).  HGP was formed in May 2020.  After a successful run at the New Albany Farmers Market, HPG decided to take its business to the next level and step into the MESA, A Collaborative Kitchen Incubator Program.
The HGP pre-order menu changes seasonally with the ability to order whole, half pies, or by the slice.  Owner, Lillie Weber,  will be revamping some classic vintage favorites with her lineup of Savory Pies, Hand Pies, and Quiches, just to name a few!  Her offerings and flavors will always be changing and pushing the boundaries of Grandma’s Blue-Ribbon Winners to combinations you’d never imagine.  Customers will be able to buy directly from HPG, with pick up at MESA and new retail outlets that will soon be released.
Lillie lives by the quote that “No pie-eating people can ever be permanently vanquished…(NYT, 1902) and challenges everyone to find something to celebrate everyday…and of course no celebration is complete without pie!”
For more information on Hoosier Girl? Pie, visit https://www.hoosiergirlpie.com/

Louisville Courier Journal ‘Best of our business community’ 1si CEO unites companies in pandemic

by Emma Austin

Louisville Courier Journal, December 17, 2020

Editor’s note: As we flip the calendar to 2021, The Courier Journal put together a list of 12 notable individuals who are committed to the advancement of Louisville. They include social justice advocates, business leaders, coaches, health care professionals, restaurateurs, arts leaders and more. 

This is one in a series of 12 people who are doing their best to help make Kentuckiana even better in the new year. 

Wendy Dant Chesser always hoped to be back home again in Southern Indiana.

Her career took her away from Jeffersonville where she was raised, not long after she graduated from Indiana University Southeast in 1991. She moved further north up U.S. 31 with each new job opportunity, eventually ending up in Berrien County, Michigan.

Then, in 2012, the president’s position opened at One Southern Indiana, the economic development organization and chamber of commerce for Clark and Floyd counties.

“I get a phone call from my mother, and she says, ‘I think it’s time you come home,’” Dant Chesser told The Courier Journal in a recent phone interview.

Eight years after returning home, Dant Chesser, 51, found herself in the difficult position of trying to leading businesses in her hometown and neighboring areas through the downturn caused by coronavirus pandemic.

Dant Chesser, the chamber’s president and CEO, said it became clear in early March the COVID-19 pandemic would impact the local economy. There were major event cancellations and shutdowns as everybody stayed home.

“I will never want to live through a time like that again, but it showed absolutely the best of our business community in Southern Indiana,” she said.

She and her 12-member team at One Southern Indiana came up with a plan involving three tracks.

The first, called 1si Connects, involved sending surveys to the chamber’s members to see what businesses needed and what they had to offer and then connecting those resources.

For instance, one major need was hand sanitizer, which was in short supply in early spring as people scrambled to stock up. One Southern Indiana learned one of its partners, Huber’s Orchard, Winery & Vineyards, was manufacturing hand sanitizer, so it connected Huber’s distillery with Formwood Industries, a Jeffersonville plywood supplier in need of the product at its manufacturing facility.

“Nobody knew exactly what to do, but everybody who had something wanted to do something,” she said.

A second prong was called 1si Calls, which included daily Facebook Live events beginning in mid-March offering education on how businesses could adapt to changing circumstances. The group led interviews with experts on a variety of topics: how to market a business without being face-to-face with consumers; best practices for payroll and human resources; and how to keep an office safe while employees work from home.

One of Dant Chesser’s favorite sessions was with a Floyds Knobs port-a-potty engineer who talked about how to sanitize a business space. “Because you really expect the port-a-potty guy to know about sanitation, and he did. It was one of our better events,” she said.

The third part of the relief effort included a loan program that provided assistance to more than 120 small businesses. The funding came from community partners, including the Caesars Foundation of Floyd County and the Community Foundation of Southern Indiana.

By late June, the effort raised nearly $1.2 million, which was distributed in forgivable or zero-interest loans to small businesses to keep their doors open.

Ellis Taylor, owner of Taylor’s Cajun Meat Co. in New Albany said he got a loan through the program. It prevented him from having to cut hours for his five employees because of meat-plant shutdowns.

“It’s helped out tremendously,” Taylor said. “Being in the chamber, we have connections to other businesses, and we can all help each other out. It’s such a blessing to be in the chamber and be a part of it all.”

But One Southern Indiana hasn’t always been in such high standing with the community, said Matt Hall, executive vice president.

“When Wendy first came here, the organization frankly was not in the best of shape,” Hall said. “We had some financial challenges; we had challenges with membership and investment.”

Hall, who knew Dant Chesser from her work in the Indiana Department of Commerce, said he was excited when he heard she was interviewing for the president’s position. Eight years later, he says she’s turned the organization around.

“I think Wendy saw the potential for this organization,” Hall said. “I think she saw the impact that this organization could have on this community.”

One Southern Indiana’s response to the pandemic, which came out of a brainstorming session the second week of March, earned the organization statewide recognition in July as the 2020 Indiana Chamber of the Year.

Dant Chesser said she was moved when she heard the award announced on a Zoom call.

“Our team has never deserved it more,” she said, adding they “made a big deal about it for a minute or so” but soon got back to work.

The organization’s response to the community’s needs was immediate, but it wasn’t a total breeze. Dant Chesser said her low point hit the first week of April.

“Even though we had a lot of stuff going on, I just had no confidence that any of it was going to work,” she said. “I’m working from my dining room table, so I didn’t have facial or nonverbal feedback to tell me whether or not this was any good.”

About that time, she tuned into a webinar hosted by the International Economic Development Council: “A Ten-Point Action Plan for Economic Developers.”

Richard Florida, founder of advisory firm Creative Class Group, and Steven Pedigo, director of research for the firm, shared their plan, telling the developers to think about what their role would be after the pandemic, and Dant Chesser had her moment of clarity.

“I had to think and look beyond the pandemic,” she said. “Because it had never occurred to me that life was going to resume beyond this pandemic — you know, I was just in my low point — and it changed my whole perspective.”

As Dant Chesser puts it, “economic development doesn’t happen unless you’ve got a good product to sell,” and the pandemic hasn’t changed the fact that One Southern Indiana still has a good product. Some of the selling points: available land, a good tax climate and being part of the Louisville metro area, she said.

As One Southern Indiana moves into 2021, the CEO said she sees the organization providing more direction for local businesses through training and education opportunities.

Additionally, Dant Chesser said she’d like to build on the the chamber’s experience in managing small business lending.

“I do have some growth plans for our organization; whether we can get them all accomplished in 2021 sort of depends on how the first six months go, but I do think there’s some opportunity for us on the back end,” she said.

Reach Emma Austin at eaustin@gannett.com or on Twitter at @emmacaustin.

Bio Box

  • Name: Wendy Dant Chesser
  • Position: President and CEO of One Southern Indiana
  • Age: 51
  • Hometown: Jeffersonville, Indiana

What she says about 2021: “I feel good that we’re going to adjust just fine to those unknowns on how cyclical reactions are going to affect our local economy. We’re going to have to stay on our toes and make sure that we continue to adjust in the most positive way for those companies who are going to struggle over the next couple years.”

Why we’ll be watching Wendy Dant Chesser in 2021:

  • Dant Chesser, president and CEO of One Southern Indiana for eight years, led the the 2020 Indiana Chamber of the Year.
  • She and her team will work to address lingering effects the pandemic has had on the local economy in 2021.
  • Dant Chesser plans to draw on One Southern Indiana’s experience managing small business lending during the pandemic to provide more assistance to businesses going forward.

View Comments

 

SBA Seeking Businesses to Apply for 8(a) Business Development Program

The SBA is looking for businesses interested in applying for the federal government’s 8(a) Business Development Program.

Benefits:  To help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities, the government limits competition for certain contracts to businesses that participate in the 8(a) Business Development program.  Disadvantaged businesses in the 8(a) program can:

  1. Compete for set-aside and sole-source contracts in the program.
  2. Get a SBA Business Opportunity Specialist to help navigate federal contracting.
  3. Form joint ventures with established businesses through the SBA’s mentor-protégé  program.
  4. Receive management and technical assistance, including business training, counseling, marketing assistance, and high-level executive development.
  5. You can compete for government contract awards under multiple socio-economic programs, as they apply.

Qualifications:

  1. Be a small business
  2. Not already have participated in the 8(a) program
  3. Be at least 51 percent owned and controlled by U.S. citizens who are economically and socially disadvantaged
  4. Be owned by someone whose personal net worth is $750,000 or less
  5. Be owned by someone whose average adjusted gross income for three years is $350,000 or less
  6. Be owned by someone with $6 million or less in assets
  7. Have the owner manage day-to-day operations and also make long-term decisions
  8. Have all its principals demonstrate good character
  9. Show potential for success and be able to perform successfully on contracts

Certification:   Before you can participate in the 8(a) business development program, you must be certified.  To get certified as an 8(a) business, simply use the certify.SBA.gov website. You’ll need to have a profile at SAM.gov before you can use the certification website. The information you’ll need to provide will vary based on your business structure and whether you’re already participating in other SBA programs.  After you successfully complete your certification process through certify.SBA.gov, you should update your business profile at SAM.gov to show contracting officers that your business is in the 8(a) program.  You’ll receive a letter in the mail informing you if your application was approved or not. If you’re accepted into the program, your profile in the Dynamic Small Business Search will show your approval date and exit date for the program.  Your certification will last for a maximum of nine years. You’ll need to complete annual reviews to maintain your good standing in the program.

Mentor-Protégé Program:  The 8(a) Mentor-Protégé program is designed to encourage mentor businesses to provide development assistance to protégé businesses. The purpose of the mentor-protégé relationship is to:

  1. Enhance the capabilities of the protégé
  2. Help the protégé meet the goals established in its SBA-approved business plan
  3. Improve the protégé’s ability to compete for contracts

A protégé can get valuable assistance from a mentor in several areas, including:

  1. Technical and/or management assistance
  2. Financing in the form of equity investments and/or loans
  3. Trade education
  4. Government contracting

If you are a business interested in applying for this program, contact Andy Alexander, Procurement Specialist, Indiana Procurement Technical Assistance Center.