Equicap Financial Tapped for Helping Role

Newport Beach-based Equicap Financial has been selected as one of 62 private organizations nationally that can assist businesses seeking federal status as small disadvantaged businesses, or SDBs.

Large prime contractors can obtain credits and monetary incentives by including SDBs in subcontracts for federal projects. As a result, certification as a small disadvantaged business “is the passport to a federal market that averages about $200 billion per year,” said Aida Alvarez, administrator of the Small Business Administration.

Equicap was the only Orange County firm and one of nine in California on the federal Small Business Administration’s list. Company officials could not be reached for comment.

Under the program, which begins Feb. 15, the 62 firms will be able to screen and analyze SDB applications to make recommendations to the government on their eligibility based on ownership and control of the small business.

The Small Business Administration will continue to determine whether applicants meet requirements for business size and for social and economic disadvantage, said Dace Pavlovskis, attorney for the SBA district office in Santa Ana.

The government defines socially disadvantaged businesses as those controlled and managed by individuals “subject to racial or ethnic prejudice or cultural bias within American society.” Operators of an economically disadvantaged business must have a net worth below $750,000.

The certification assistance program stems from a federal decision in December to allow firms involved with federal subcontracting to continue to provide their own data when applying for SDB status through June 30. Previously, the so-called self-certification option was to expire Jan. 1.

Applications for SDB status can be obtained from the local SBA office in Santa Ana, from Equicap or online at https://www.sba.gov/sdb, or by calling a toll-free number, (800) 558-0884.

The private certifiers also can receive and process the completed forms and are allowed to charge a fee for their services.

They have 15 days to make certain the application is complete and another 30 days to determine whether the applicant meets the ownership and control requirements for SDB status.

To qualify, an economically or socially disadvantaged individual or individuals must own at least 51% of the business and must be devoted full time to its daily management. Once the private certifiers complete their analysis, the package is forwarded to the SBA, which must complete its work in 30 days.

The SBA, which began accepting applications Aug. 24, now has nearly 5,800 certified SDBs in its subcontracting network.