Frequently Asked Questions (FAQs)

Get answers to common questions and more specific situations about all kinds of businesses.

How do I participate in the Small Business Set-Aside Program?

The State of New Jersey Small Business Set-Aside Program was established with the goal of awarding 25 percent of state contracting and purchase order dollars to small businesses. By registering your small business with the New Jersey Small Business Set-Aside Program, through the Division of Revenue & Enterprise Services, your company becomes a member of a limited group of vendors eligible to participate in these selected contract offerings.

Standards of Eligibility for Small Business

New Jersey Small Business Set-Aside Program's criteria as set forth in N.J.A.C. 17:13 and/or 17:14 are as follows:

For goods and services contracts, small businesses with no more than 100 full-time employees will be registered in one of the following three categories:

  • Small businesses whose gross revenues do not exceed $500,000
  • Small businesses whose gross revenues do not exceed $5 million
  • Small businesses whose gross revenues do not exceed $12 million or the applicable federal revenue standards established at 13 CFR 121.201, incorporated herein by reference, whichever is higher, as may be adjusted periodically.

For state construction contracts, small businesses with no more than 100 full-time employees will be registered in one of the following three categories:

  • Small business with gross revenues that do not exceed $3 million.
  • Small businesses with gross revenues that do not exceed 50 percent of the applicable annual revenue standards set forth in federal regulation at 13 CFR 121.201, incorporated herein by reference, and as may be adjusted periodically.
  • Small business with gross revenues that do not exceed the applicable annual revenue standards set forth in federal regulation at 13 CFR 121.201, incorporated herein by reference, as may be adjusted periodically.

The business must be independently owned and operated, with management being responsible for both its daily and long-term operation, as well as owning at least 51 percent interest in the business.

Businesses must be incorporated or registered with the Division of Revenue & Enterprise Services to do business in the State and have its principal place of business in New Jersey, defined when:

  • 51 percent or more of its employees work in New Jersey supported by paid New Jersey unemployment taxes or;
  • 51 percent or more of its business operations/activities occur in New Jersey supported by income and/or business tax returns.
  • The business must be a sole proprietorship, partnership, limited liability company or corporation with 100 or fewer employees in full-time positions, not including:
  • Seasonal and part-time employees employed for less than 90 days, if seasonal and casual part-time employment are common to that industry and
  • Consultants employed under contracts for which the business wants to be eligible as a small business.

To apply for small business registration and participation in the New Jersey Small Business Set-Aside Program, you may submit the New SBE Online Registry Service Application.

For additional information on these programs or services, call the Division of Revenue & Enterprise Services, Small Business Registration and M/WBE Certification Services Unit at 609.292.2146.

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