N.J. Admin. Code § 17:13-2.1

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:13-2.1 - Standards of eligibility for small businesses for goods and services and for State construction contracts

(a) In order to be eligible as a small business, a business must satisfy all of the following criteria:

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

2. The business must be incorporated or registered to do business in the State and have its principal place of business in New Jersey, defined as such when either 51 percent or more of its employees work in New Jersey, as evidenced by the payment of New Jersey unemployment taxes, or 51 percent or more of its business activities take place in New Jersey, as evidenced by its payment of income or business taxes.

3. The business must be a sole proprietorship, partnership, limited liability company, or corporation with 100 or fewer employees in full-time positions (35 hours or more 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 other contract not related to the goods and services which are the subject of the specific contract for which the business wants to be eligible as a small business).

4. For goods and services contracts, the business must have gross revenues that do not exceed $ 12 million or the applicable Federal revenue standards established at 13 CFR 121.201, incorporated herein by reference, whichever is higher. For State construction contracts, the business must have gross revenues that do not exceed $ 3 million or the applicable annual revenue standards set forth in Federal regulation at 13 CFR 121.201, incorporated herein by reference, as may be adjusted periodically.

i. Gross revenues of a business which has been in business for three or more completed years means the revenues of the business over its last three completed tax years divided by three.

ii. Gross revenues of a business which has been in business for less than three complete tax years means the revenues for the period the business has been in business divided by the number of weeks in business, multiplied by 52.

iii. Gross revenues of a business which has been in business three or more complete tax years but has a short year as one of those years means the revenue for the short year and the two full years divided by the number of weeks in the short year and the two full years, multiplied by 52.

(b) In addition to (a) above, the Division may limit participation in its small business set-aside programs to businesses whose individual owners do not exceed $ 750,000 in personal net worth.

(c) Small businesses, for goods and services, will be registered in one of the following three categories:

1. Small businesses whose gross revenues do not exceed $ 500,000;

2. Small businesses whose gross revenues do not exceed $ 5 million; or

3. 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.

(d) Small businesses for State construction contracts will be registered in one of the following three categories:

1. Small businesses whose gross revenues do not exceed $ 3 million;

2. Small businesses whose gross revenues do not exceed 50 percent of the applicable annual revenue standards set forth in Federal regulation at 13 CFR 121.201 (see www.sba.gov/tools/resourcelibrary/laws_and_regulations/index.html [File Link Not Available]), incorporated herein by reference, and as may be adjusted periodically; or

3. Small businesses whose gross revenues 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.

(e) Small businesses properly registered in the category in (c)1 above will be eligible to participate in set-aside contracts and subcontracting programs available to businesses registered in the categories in (c)1, 2, and 3 above. Small businesses properly registered in the category in (c)2 above will be eligible to participate in set-side contracts and subcontracting programs available to businesses registered in the categories in (c)2 and 3 above. Small businesses properly registered in the category in (c)3 above will be eligible to participate in set-aside contracts and subcontracting programs available to businesses in the category in (c)3 above only.

(f) Small businesses properly registered in the category in (d)1 above will be eligible to participate in set-aside contracts and subcontracting programs available to businesses registered in the categories in (d)1, 2, and 3 above. Small businesses properly registered only in the category in (d)2 above will be eligible to participate in set-aside contracts and subcontracting programs available to businesses registered in the categories in (d)2 and 3 above. Small businesses properly registered in the category in (d)3 above will be eligible to participate in set-aside contracts and subcontracting programs available to businesses registered only in the category in (d)3 above.

N.J. Admin. Code § 17:13-2.1

Adopted by 49 N.J.R. 3784(b), effective 12/4/2017