By Megan Sayles
AFRO Staff Writer
msayles@afro.com
Established in 2004, the Maryland Small Business Reserve (SBR) Program was created to supply small business owners with opportunities to compete as prime contractors in the state’s procurement ecosystem.
At its inception, 10 percent of state spending was set aside for small businesses. Today, 20 percent of all open government procurement opportunities are designated for small businesses.
Having the ability to compete as a prime on a contract gives small businesses greater financial control and security, according to Lisa Mitchell Sennaar, compliance manager for the SBR.
“It’s beneficial to most businesses to be a prime contractor because you enter directly into the relationship with the agency buyer. There’s no delay in getting the money,” said Mitchell Sennaar. “You get to really understand the contract terms, and you are the direct beneficiary of those payments.”
The key to certification for SBR is the eMaryland Marketplace Advantage (eMMA) platform, according to Mitchell Sennaar. On eMMA, businesses can self-certify for the program.
Though the SBR is a gender- and race-neutral program, businesses must meet certain size requirements to qualify. These standards are tailored to each industry, and businesses only need to satisfy one of the conditions.
For example, a wholesaler can have no more than 50 employees, or it can have averaged less than $4 million in sales over the past three years. A retailer can have no more than 25 employees, or it can have averaged less than $3 million in sales over the past three years. A construction firm can have no more than 50 employees, or it can have averaged less than $7 million in sales over the past three years.
“eMMA is the state’s procurement portal. Any solicitations or procurement over $15,000 are advertised on it. All state agencies that participate advertise their procurements on eMMA,” said Mitchell Sennaar. “The great thing about eMMA is that it is free to create a vendor profile.”
Taking advantage of procurement enables entrepreneurs to attract more business, according to Mitchell Sennaar. State agencies become customers to business owners. They have a constant need for a range of services, and they are reliable, according to the compliance manager.
“State agencies buy just about everything, and they pay their bills,” said Mitchell Sennaar. “If you’re the prime contractor, that’s just a nice way of diversifying your customer base. State government contracting is not for everyone, but if you’re willing to do the work of learning the rules and cultivating relationships, you’re more than likely going to be successful.”
Last fiscal year, the set-aside for the SBR totaled more than $400 million. Mitchell Sennaar said this number will only grow in the future.
She encouraged entrepreneurs to make use of eMMA. The platform features a frequently asked questions section and a quick reference guide that covers fundamentals, like vendor registration, navigating eMMA, searching solicitations and submitting bids.
As the Governor’s Office of Small, Minority and Women Business Affairs is responsible for the SBR program, the agency holds monthly webinars curated for entrepreneurs to familiarize themselves with contracting. The office also holds a quarterly “Meet the Buyers” workshop to introduce business owners to the state agencies that have solicitations.
“For Maryland businesses, the fact that you participate in this program and receive those dollars is a multiplier in terms of the benefit to your community and the larger Maryland community,” said Mitchell Sennaar. “You’re creating jobs, you’re generating revenue through local spending, you’re fostering innovation and you’re revitalizing our neighborhoods. All of this, [including] the diversity and resilience of our community, is directly tied to small businesses participation in the Maryland state economy.”
