SBDCNet Connections Issue 54: Stimulus Money & Small Business Report
October, 2009
Completed by Shuchi Nagpal and Tobin Scroggins
Congress passed the American Recovery and Reinvestment Act of 2009 on February 13, 2009, and four days later, the President signed the legislation into law. As of Sept. 2009 the $787 billion Recovery plan has awarded 20,287 contracts roughly worth $12 billion, 60,320 federal grants worth $141 billion and 17,438 loans for about 8 billion dollars. In seven months the federal government has already spent $161 billion which is around 20 percent of the entire funding available.1 Where is the money going and how much is being spent to support small businesses?
“More than $1 out of every $4 spent on federal Recovery Act contracts has gone to small businesses….As of Oct. 2, nearly 26 percent of all federal stimulus contracting dollars –or more than $4 million was awarded to small businesses…” These are the words of Joe Jordan, associate administrator of government contracting business development at the Small Business Administration, in testimony before the Small Business Entrepreneurship Committee.2
Completed by Shuchi Nagpal and Tobin Scroggins
Congress passed the American Recovery and Reinvestment Act of 2009 on February 13, 2009, and four days later, the President signed the legislation into law. As of Sept. 2009 the $787 billion Recovery plan has awarded 20,287 contracts roughly worth $12 billion, 60,320 federal grants worth $141 billion and 17,438 loans for about 8 billion dollars. In seven months the federal government has already spent $161 billion which is around 20 percent of the entire funding available.1 Where is the money going and how much is being spent to support small businesses?“More than $1 out of every $4 spent on federal Recovery Act contracts has gone to small businesses….As of Oct. 2, nearly 26 percent of all federal stimulus contracting dollars –or more than $4 million was awarded to small businesses…” These are the words of Joe Jordan, associate administrator of government contracting business development at the Small Business Administration, in testimony before the Small Business Entrepreneurship Committee.2
The Recovery Act does not set a specific goal for small business contracting, but in most cases, agencies have been instructed to follow the government's annual goal of awarding 23 percent of all prime contract dollars to small firms. That means about $13 billion of the roughly $60 billion in stimulus funds expected to be awarded through federal contracts should go to small businesses, Jordan said.2
While the government seems to be exceeding its goals in small business contracting, different people and agencies have mixed reactions and several conflicting reports reflect that. The public sentiment of small business owners, especially women and minority owners, are not reflective of the success stories being trumped by SBA or the federal government. There has been a lot of push to create more “green jobs” and jump starting the economy by investing in “green economy”. But there is lack in clarity on how small business owners can get their piece of pie, especially in terms of federal contracts and grants.
So what does green economy and green jobs mean to domestic industries and how small and mid-size businesses can benefit from the “green” provisions in the American Recovery and Reinvestment Act of 2009? Below is a review and analysis of some of the aspects of Recovery Act that are directly related to small business and some ideas of how all small businesses can benefit from these stimulus funds.
Green Jobs are jobs directly involved in generating or supporting a firm’s green-related products or services and green economy includes primary occupations engaged in generating a firm’s green-related products or services, and the other support jobs created by the firm’s green related revenue. Industries that provide products or services related to renewable energy, increased energy efficiency, clean transportation and fuels, agriculture and natural resource conservation, and pollution prevention or environmental cleanup.3
Green Jobs Act, 2007 (GJA)
The Green Jobs Act of 2007 authorized $125 million per year to create Energy Efficiency and Renewable Energy Worker Training Program as an amendment to the Workforce Investment Act (WIA). The Program is administered by the U.S. Department of Labor (DOL) in consultation with the Department of Energy. The GJA authorizes spending for 5 related green job programs. Once Congress appropriates funding for the GJA, money flows through the following:
1. National Research Program, carried out by the Bureau of Labor Statistics.
2. State Research and Labor Exchange Program where state governments conduct their own labor market and related research and provide labor exchange services.
3. National Energy Training Partnership Grants, in which DOL directly awards funds to multi-stakeholder workforce training partnerships. Grants will be awarded to ensure geographic diversity across different regions of the country.
4. State Energy Training Partnership Program, in which DOL awards funds to state governments, which then re-grant the funds to multi-stakeholder workforce training partnerships.
5. Pathways Out of Poverty Program, in which DOL directly awards funds to training partnerships that have a specific focus on serving low-income individuals. The legislation does not specify the number of grants or the size of the grants in this program, but it does say that the grants "shall be awarded to ensure geographic diversity."
In all programs except the National Research Program, DOL will award the grants competitively.3
American Recovery and Reinvestment Act, 2009 (ARRA)
The Recovery Act’s three main goals are to:
• Create and save jobs
• Spur economic activity and invest in long-term economic growth
• Foster unprecedented levels of accountability and transparency in government spending.1
Recovery Act was intended to jumpstart the economy, but many of the projects funded by recovery money, especially those involving infrastructure improvements, are expected to contribute to economic growth for many years. President Obama and his economic advisors are hoping to create more than 1.6 million green jobs in the small and mid-size businesses through the ARRA. Small businesses are the backbone of the U.S. economy and employ slightly more than half of the U.S. private workforce.
Here’s a snapshot of available funds and grants:
INSERT MAP- http://www.recovery.gov/Transparency/Pages/home.aspx
Small Business Administration
The Obama administration’s plans to revitalize the secondary market for small business loans of¬fer the best means to break the current blockage in small business lending. Some of the Small Business Administration’s Recovery Programs that have already been implemented include, eliminating and reducing fees for borrowers on 7(a) loans and for borrowers and lenders on 504 loans and raising to 90 percent the guarantee on 7(a) loans from 75 percent and 85 percent depending on the size of loan. These programs also aim to double the surety bond guarantee from $2 million to $5 million, and provide small businesses with another tool to help them compete for federal construction and service contracts. SBA has also been active assisting the struggling small businesses with the new ARC loan program, which provides no-interest, deferred repayment loans of up to $35,000 to viable businesses to help them make debt payments and giving refinancing opportunities for certain eligible loans into SBA-backed 504 loans for expansion and job creation.
Eligibility
Small business loans and small business grants may be awarded to companies that meet the size standards that the U.S. Small Business Administration (SBA) has established for most industries in the economy. The most common size standards are as follows:
• 500 employees for most manufacturing and mining industries
• 100 employees for all wholesale trade industries
• $6 million for most retail and service industries
• $28.5 million for most general & heavy construction industries
• $12 million for all special trade contractors
• $0.75 million for most agricultural industries
Note that about one-fourth of industries have a size standard that is different from these levels, they vary from $0.75 million to $28.5 million for size standards based on average annual revenues and from 100 to 1500 employees for size standards based on number of employees.
Government Contracts
Getting a federal contract is a process that involves accurate understanding of contracting rules and regulations. All small businesses that have been in business for more than two years and show a positive cash flow can bid for any size contracts.4; After selecting which NAICS code your small-business is classified under, register your company in the central Contractor Registration database.5 As of October, 2009 there are about 500,000 companies, including foreign businesses registered.
Next step would be to fill up the online representation and certifications application that can be found at ORCA. The OSDBU (Office of Small and Disadvantaged Business Utilization) main purpose is to help promote and assist small businesses in the federal acquisition process, ensuring that each Federal agency and their large prime vendors comply with federal laws, regulations, and policies to include small business concerns as sources for goods and services as prime contractors and subcontractors. A list of agencies with contact information and local addresses can be accessed at OSDBU (Office of Small and Disadvantaged Business Utilization) Director’s website.6
As there are multiple federal agencies and thousands of federal departments and offices, it is recommended to start with choosing three agencies to focus your initial research and looking for branch within 50 miles of your location. There are several S.B.A. resource partners and procurement centers that counsel and train small business owners in obtaining contracts, Small Business Development Centers, SCORE and Women’s Business Centers. Most of the Small Business Development Centers have a local procurement and technical assistant center that help make the process easier to obtain and execute federal contracts.7
Consider subcontracting and partnering. Research which companies in your industry have contracts and contact them to determine how your company can help fulfill their goals. Lourdes Martin-Rosa, American Express OPEN adviser on government contracting, recommends that small concerns getting started with federal contracting partner with a larger firm on their first contracts to get a feel for the process.5
With few exceptions, all federal agencies, and many state and local governments, use the size standards established by SBA. You can search for further information and for loan opportunities on the Small Business Administration’s website.
There are lot of venues for small businesses to reap benefits if they focus on the impact of these available resources on the U.S. economy and specifically creation of ‘Green Jobs’ and the industries associated with it. Green industries are defined as being comprised of industries that provide products or services in mainly five areas: (1) Agriculture and Natural Resource Conservation, (2) Clean Transportation and Fuels, (3) Increased Energy Efficiency, (4) Pollution Prevention and Environmental Cleanup, (5) Renewable Energy Production.
Agriculture and Natural Resource Conservation
Natural resource conservation refers to products or services designed to help conserve, maintain, and improve natural resources and the environment. Certain “green” agricultural businesses provide necessary inputs for the production of biomass energy including: wood, agricultural crops and animal wastes. These “crops” can be viewed as renewable and sustainable if managed properly. Other examples include food systems, forest and land management, and organic farming. Sustainable agriculture and forestry are achieved by governmental and private industries adopting certain industry standards utilizing established best management practices.
The Department of Agriculture (USDA) has been tasked with distributing nearly $28 billion in Recovery Act funds as well as a host of guaranteed loan programs which account for a total of $52 billion. The graph below shows the distribution of these funds. The largest expenditures are going towards Nutrition Assistance and Rural Community Development. Opportunities for small businesses are available in the areas of Conservation and Forestry and Rural and Community Development.8
Recovery Act funds are available to business of all sizes and the USDA urges business owners not to ignore these opportunities. “Prime contractors who receive logging or land clearing contracts valued over $550,000 are required to establish plans and goals for subcontracting with small businesses. Subcontracting is a good way for small businesses to participate in government contract opportunities that they could not otherwise be awarded.9
Through their Conservation and Forestry Grants USDA is promoting an increase in Green Jobs and the production on renewable energy resources. One such grant recently provided Treasury Valley Forest Products of Idaho with $500,000 in funding. These Recovery Act funds have allowed Treasury Valley Forest Products to increase their production of wood pellets which are a clean burning home heating fuel. “Altogether, the Recovery Act investments into Treasure Valley Forest Products will create 50 jobs: 15 jobs at the plant in Mountain Home and 35 jobs in the forest. This project shows the potential for rural communities to create the green jobs of the 21st century by using resources available locally like forests or agricultural bi-products to produce clean, renewable energy.10
Listed below are a few examples of contracts available through the USDA Forest Service:11
Hoyer Campground Reconstruction
Date of Announcement: March 9, 2009
Estimated Funding: $ 1,230,000 for Capital Improvement and Maintenance
County: Apache
Hoyer Campground is on the Apache-Sitgreaves National Forest in Apache County, Arizona.
The project provides additional economic benefit of sustaining tourism in one of the highest unemployment counties in Arizona. It replaces 30-year-old, non-accessible restrooms with accessible restrooms and the associated site work necessary for their accessibility. It also provides reconstruction of a road system for the campground. Hoyer Campground is located 20 minutes from the recreation and tourism-dependant towns of Eagar and Springerville, Arizona and 5 minutes from Greer, Arizona.
Forest-wide Road Realignment and Decommissioning
Date of Announcement: June 2, 2009
Estimated Funding: $ 2,000,000 for Capital Improvement and Maintenance
Partners: Arizona Game and Fish Department and the Wild Turkey Federation
Counties: Graham, Pima and Santa Cruz
The project entails the realignment of existing roads where no legal access is currently available, and unlikely to be secured in-place, to Forest Service lands; realignment of existing roads where safety and/or environmental concerns related to the current location will also occur; decommissioning many roads identified for disposal under the ongoing Travel Management Rule, which is nearing completion on several areas of the Coronado National Forest; and road surface improvements. This project will produce jobs in economically distressed counties in Arizona and will work with Arizona Game and Fish as well as the Turkey Federation to accomplish the goals for this project.
Enhance Safety and Condition of Forest Roads in Missouri
Date of Announcement: March 9, 2009
Estimated Funding: $ 369,000 for Capital Improvement and Maintenance
Counties: Statewide
This project will address an urgent backlog of needed road maintenance in the Mark Twain National Forest on routes damaged by extensive natural disasters (flooding, ice storms, and wind events) over the past two years. Economic recovery funding of $369,000 will provide new jobs in the private sector to accomplish this work. Forest Service roads in the Mark Twain intertwine with county road systems in 29 Missouri counties. These road systems are used for school bus routes, firefighting, ambulance services, and recreational activities. This project will have long-standing benefits to the community for daily activities and emergency services, as well as enhanced recreational opportunities.
Nebraska National Forest Recreation Sites Improvements and Deferred Maintenance Reduction
Date of Announcement: August 18, 2009
Estimated Funding: $ 644,000 for Capital Improvement and Maintenance
County: Cherry
This project will complete all deferred maintenance needs on the National Forest and Grasslands units in Nebraska. Most of these sites were built in the 1960s with few improvements since then. Upgrades are necessary to bring them into compliance with Forest Service standards and meet accessibility needs. Safety concerns will also be addressed. New wells for drinking water and new sanitary facilities are two examples of the improvements that will be accomplished with these funds.
Below is a partial list of NAICS codes associated with industries eligible for USDA Recovery Act funds:
111110 Soybean Farming
111140 Wheat Farming
111150 Corn Farming
111421 Nursery and Tree Production
111422 Floriculture Production
111991 Sugarbeet Farming
111998 All Other Miscellaneous Crop Farming
113110 Timber Tract Operations
113210 Forest Nursery/Gathering Forest Products
113310 Logging
115114 Postharvest Crop Activities
115310 Support Activities for Forestry
236115 Low Income Construction Contractors
236220 Commercial Building Construction
238130 Framing Contractors
238160 Roofing Contractors
The projects being funded by the USDA fall under a very large umbrella. The following list of available contracts and funding opportunities should give an indication of the variety of business opportunities available through the USDA.12 13
For more information or to request application materials regarding funding for Rural and Community Development please contact your local Rural Development Office for assistance.14
Clean Transportation and Fuels
Clean transportation refers to the research, development, and production of new technologies for energy storage and alternative fuels, as well as the engineering of improved fuel efficiencies and emissions reductions. Examples of these activities include: advanced batteries, fuel cells, electric, and hybrid vehicles, alternative fuels, public transit, and activities related to meeting fuel efficiency standards, and more.
It is the goal of the Department of Transportation (DOT) to use Recovery Act funds to transform travel in the United States. Through increased efficiency of fleet vehicles, improvements in highway infrastructure and development of a high-speed rail system, the DOT hopes to maintain a competitive transportation network in the 21st century.
The majority of the Recovery Act funds ($48.1 billion) that have been made available to the DOT will go towards highway, transit, bridge, rail, shipyard and airport construction and repairs nationwide.15 One program that falls under the watch of the DOT is the Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER) grant program. Through TRIGGER the DOT will provide funding for 43 transit agencies that are pursuing “cutting-edge environmental technologies to help reduce global warming, and lessen America's dependence on oil and create green jobs.”
Some of the winning project proposals have been awarded to:
California: AC Transit (Hayward, headquarters in Oakland), $6,400,000. Install photovoltaic capacity to generate "green" hydrogen: Install multiple PV modules at its Central Maintenance Facility in Hayward. Combined with AC Transit's already-installed solar capacity, this solar installation will produce the renewable electricity equivalent to what will be required to produce 180 kg/day of "green" hydrogen.
Colorado: Denver Regional Transportation District (Aurora, headquarters in Denver), $770,000. Heating upgrades at East Metro bus maintenance facility: To improve the heating system at its East Metro bus maintenance facility located in Aurora, CO. This project will replace the three existing boilers with three new 15-psi, 20-ppm NOx boilers with Advanced Hawk Integrated Control Systems. The advanced control system will operate the boilers based on load demand as opposed to outside temperature.
Illinois: Champaign-Urbana Mass Transit District – CUMTD (Champaign-Urbana), $450,000. Facility upgrade with Geothermal Heat Pump System: CUMTD will replace the existing conventional HVAC system with an efficient geothermal HVAC system. Geothermal HVAC systems are highly effective systems with improved efficiencies over conventional systems due to the heat exchange process with an underground source that maintains near constant temperatures.
Michigan: Thunder Bay Transportation Authority – TBTA (Alpena), $2,590,000. Plug-in hybrid buses purchase: Replace 4 diesel buses with 4 series plug-in hybrid buses, operate in a non-urban/rural area and collect data for two years. Bay Area Transportation Authority (BATA) will provide technical assistance to TBTA.
For more information about the TRIGER program and other business opportunities made possible through Department of Transportation Recovery Act funds please visit the DOT American Recovery and Reinvestment Act of 2009 website. 16
In addition to the TIGGER grants the DOE has begun a Clean Cities program that is intended to transform the nation’s vehicle fleet. The Clean Cities program will provide funds for 25 cost-share projects on the state and local level that will in turn help develop public/private partnerships to promote alternative fuels and advanced vehicles, fuel blends, fuel economy, hybrid vehicles, and idle reduction.17 The goal of the Clean Cities program is to put upwards of 9,000 alternative fuel and energy efficient vehicles on the road. This increase in energy efficiency should reduce petroleum usage by 38 million gallons per year.18
Increased Energy Efficiency
Energy efficiency encompasses all changes that result in a reduction of the energy used for a given energy service (i.e., space heating, lighting, etc.) or level of activity. Examples include: insulation of a building can achieve the same desired temperature with less energy use; adopting green building design/LEED standards encourages downsizing or upgrading of HVAC, lighting and other energy systems, which reduces energy demand in the building; producing an energy efficient household appliance, such as a refrigerator or dryer, which delivers the same performance using less electricity; or providing engineering, consulting or research services on operations, materials, or technologies that improve energy efficiency.
The Department of Energy (DOE) has been allocated $36.7 billion in Recover Act funds. To date less than half of the available funds have been awarded. The status and progress chart shows the portion of the $36.7 billion that remain unallocated or awarded. The majority of the DOE funds, $16.8 billion, are available through the Office of Energy Efficiency and Renewable Energy (EERE).19 According to a February press release form the Office of EERE the $16.7 billion in funding is a nearly tenfold increase in available funds from the 2008 fiscal year. 20
The bulk of the EERE Recovery Act funds are going to support direct grants and rebates. The Weatherization Assistance Program has received $5 billion which will go towards weatherization and energy efficiency assistance for low income families. Another $4 billion will provide for rehabilitation and retrofitting of public housing units.
The Recovery Act also stipulates that $3.2 billion will go toward Energy Efficiency and Conservation Block Grants. These grants will help states, local governments, and tribal programs in their support of the development of energy efficiency and conservation strategies. Conservation and efficiency strategies include energy audit programs and projects to install fuel cells and solar, wind, and biomass power projects at government buildings.
The News page form the Recovery Act homepage has the following story regarding the Department of Energy’s Weatherization Program in Ohio. 21
Below is a partial list of NAICS codes associated with industries that are eligible for DOE Recovery Act funds, in particular the $16.8 billion available through the Office of EERE:
221310 Water Supply and Irrigation Systems
221320 Sewage Treatment Facilities
236115 New Single-Family Housing Construction
236116 New Multi-Family Housing Construction
236117 New Housing Operative Builders
236118 Residential Remodelers
236210 Industrial Building Construction
236220 Commercial and Institutional Construction
237110 Water and Sewer Line and Related Structures Construction
237130 Power and Communication Line and Related Structures Construction
238151 Glass and Glazing Contractors - Residential
238161 Roofing Contractors -Residential
238162 Roofing Contractors –Nonresidential
238171 Siding Contractors - Residential
238172 Siding Contractors - Nonresidential
238211 Electrical Contractors - Residential
238212 Electrical Contractors - Nonresidential
238221 Plumbing, Heating, and Air-Conditioning Contractors - Residential
238222 Plumbing, Heating, and Air-Conditioning Contractors - Nonresidential
238311 Drywall and Insulation Contractors - Residential
238312 Drywall and Insulation Contractors - Nonresidential
Pollution Prevention and Environmental Cleanup
Pollution prevention refers to products that are designed to have minimal impacts on human health and the environment, and services that eliminate or reduce the amount and toxicity of potentially harmful substances at their source. Businesses that provide services and/or products related to controlling industrial and commercial emissions, environmental remediation, waste treatment, recycling, water conservation and treatment, and redevelopment are examples in this area.
The Recovery Act has provided $7.22 billion for projects and programs administered by the Environmental Protection Agency (EPA). The programs are intended to protect and promote both green jobs and a cleaner environment. The $7.22 billion in EPA funds have been allocated for environmental cleanup in the following areas:
Clean Water and Drinking Water Infrastructure
A total of $6 billion has been allocated to help states and local communities construct and restore their wastewater infrastructure. States will also be able to address their drinking water needs as well as restoration of water treatment and distribution facilities. The EPA has set aside $1.2 billion of the funding to go towards green infrastructure, water and energy efficiency, and environmentally innovative projects.
Brownfields Revitalization
Brownfield lands whose use or redevelopment may be complicated by the presence of hazardous substances or contaminants. Under the Recovery Act the EPA will award grants to local communities, states and tribes to facilitate the creation and retention of jobs and economic development. A portion of the Brownfield grants will go towards job training and community education regarding the sustainable reuse of Brownfield lands.
In addition to the Clean Water and Brownfield funds the EPA will use $1.1 billion to help reduce diesel emissions, cleanup leaks from underground petroleum storage tanks, and speed cleanup at Superfund sites.22
Opportunities are somewhat limited for small businesses though the EPA’s Recovery Act programs. However, job training programs which help train and prepare a “green” workforce are available. Please visit the EPA’s Recovery Act website for more information on educational opportunities.23
Renewable Energy Production
Renewable energy is energy generated from sustainable, natural resources— such as sunlight (solar), wind, water (hydro), geothermal heat, and biomass ( wood and wood waste, agricultural and energy crops & associated residues, animal waste, municipal solid waste, food products & processing waste), that can be naturally regenerated in the short-term. Related businesses include those producing renewable energy as well as firms that produce and supply parts or equipment used in energy collection and distribution such as solar panels or wind turbines.
Clean energy projects are being promoted and funded by several agencies through Recovery Act funds. The Department of Energy and Interior are pouring billions of dollars into the economy to stimulate growth in renewable energy production as well as improvements to the electricity grid. The Bureau of Land Management (BLM) currently has 241 applications for wind projects and 199 applications for solar projects to be located on public lands. According to the BLM, they have received “$305 million to help stimulate the economy through investments in the National System of Public Lands. A total of $41 million for 65 projects will be used to facilitate a rapid and responsible move to large-scale production of solar, wind, and geothermal energy, as well as the siting of transmission infrastructure on public lands to support renewable energy development.24
The Fish and Wildlife Service is also getting into the act by funding the installation of solar photovoltaic systems at the Bosque del Apache and Sevilleta National Wildlife Refuges (NWR) in New Mexico. These solar installation projects are just two of 129 energy-efficient, habitat-restoration, and other improvement projects underway in the Fish and Wildlife Service’s Southwest Region.25
In addition to its weatherization programs the DOE is heavily funding research and development of clean, renewable domestic energy. On September 22, 2009 Energy Secretary Stephen Chu announced an additional $550 million in awards through the Recovery Act program.
This announcement marked a milestone for the DOE with $1 billion dollars in total being awarded to companies investing in domestic renewable energy.26
The size and type of the contracts available through the DOE limit the opportunities for small to medium businesses in the initial round of funding. However, subcontracting opportunities are plentiful so please review the Government Contracts section of this newsletter for details on becoming a certified subcontractor.
The following NAICS codes are associated with industries that are eligible for contracting or subcontracting projects through the DOE Recovery Program.
541310 Architectural Services
541320 Landscape Architectural Services
541330 Engineering Services
541360 Geophysical Surveying and Mapping Services
541370 Other Surveying and Mapping Services
541380 Testing Laboratories
541420 Industrial Design Services
541614 Process and Logistics Consulting Services
541618 Other Management Consulting Services
541620 Environmental Consulting Services
541690 Other Technical Consulting Services
541712 Research and Development in the Physical, Engineering, and Life Sciences
562111 Solid Waste Collection
562112 Hazardous Waste Collection
562119 Other Waste Collection
562211 Hazardous Waste Treatment and Disposal
562212 Solid Waste Landfills
562219 Other Nonhazardous Waste Treatment and Disposal
562910 Remediation Services
562998 All Other Miscellaneous Waste Management Services
712130 Zoos and Botanical Gardens
712190 Nature Parks and Other Similar Institutions
813312 Enviro, Conservation and Wildlife Orgs
238152 Glass and Glazing Contractors - Nonresidential
238161 Roofing Contractors -Residential
238162 Roofing Contractors –Nonresidential
238171 Siding Contractors - Residential
238172 Siding Contractors - Nonresidential
238211 Electrical Contractors - Residential
238212 Electrical Contractors - Nonresidential
238221 Plumbing, Heating, and Air-Conditioning Contractors - Residential
238222 Plumbing, Heating, and Air-Conditioning Contractors - Nonresidential
238311 Drywall and Insulation Contractors - Residential
238312 Drywall and Insulation Contractors - Nonresidential
Conclusion
The bulk of ARRA money has not yet been made available, as there are transparency and reporting requirements that have to be taken into account before the money is released. But if you do want to benefit from these provisions, you will have to do significant research and make your action plan now. Decide the product(s) or services(s) within the realm of broad industries mentioned above. Target specific government agencies and use the free resources and services provided by SBA and other organizations specially geared to help small businesses. If possible, identify the procurement people involved and program managers and attend as many briefings as possible. There are multiple opportunities for newer technologies and innovative ideas.
The U.S. Small Business Administration (SBA) Office of Technology administers the Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) Program. Through these two competitive programs, SBA ensures that the nation's small, high-tech, innovative businesses are a significant part of the federal government's research and development efforts. The current rise in government R&D spending means that SBIR funding (based on percentage of total R&D dollars) will rise. New opportuni¬ties are available, especially for firms that seek to contract with research-intensive agencies like NIH, the Department of Defense, and the Depart¬ment of Energy. Each federal agency runs its own SBIR program.27 Eleven federal departments participate in the SBIR program; five departments participate in the STTR program awarding $2 billion to small high-tech businesses. The U.S National Science Foundation administers the SBIR.GOV site on behalf of the federal government.28
So what’s the bottom line for entrepreneurs looking to capitalize on big changes afoot at SBA? Be Patient!
The SBA is in the midst of a significant upgrade of its capabilities, with the hiring of additional staff and the development of a host of new and improved programs. It will take some time for this new infrastructure to be put into place, but policies are moving in the right direction. With a new leadership team in place, SBA and its partner organizations should be able to provide a much more comprehensive set of support services and new programs to meet the needs of small business owners and aspiring entrepreneurs.
Wherever you find yourself in this process, regardless of where you live in the country, the ARRA spending will impact your community and there will always be some resources locally that will help you find out more.
SOURCES:
1 http://www.usda.gov/wps/portal/arrapie?navid=USDA_ARRA_OVEW
2 http://www.govexec.com/dailyfed/1009/100609rb1.htm
3 http://www.greenforall.org/files/faq-greenjobsact07.pdf
4 http://www.nytimes.com/2009/10/08/business/smallbusiness/08contracts.html?_r=4&8dpc
5 https://www.bpn.gov/ccr/default.aspx
6 http://www.osdbu.gov/offices.html
7 http://www.aptac-us.org/new/Govt_Contracting/find.php
8 http://www.usda.gov/wps/portal/arrapie?navid=USDA_ARRA_OVEW
9 http://www.timberlinemag.com/articledatabase/view.asp?articleID=2960
10 http://usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1RD?printable=true&contentidonly=true&contentid=2009/09/0479.xml
11 http://www.fs.fed.us/arra/arra-first-10-percent.pdf
12 http://edocket.access.gpo.gov/2009/pdf/E9-21030.pdf
13 http://www.rurdev.usda.gov/rhs/sfh/GSFH_Information/Builders.htm
14 http://offices.sc.egov.usda.gov/locator/app
15 http://www.dot.gov/affairs/2009/fta2209.htm
16 http://www.dot.gov/recovery/
17 http://www1.eere.energy.gov/cleancities/
18 http://apps1.eere.energy.gov/news/progress_alerts.cfm/pa_id=232
19 http://www.energy.gov/recovery/
20 http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=12243
21 http://www.recovery.gov/News/featured/Pages/OHWeatherizingHomes.aspx
22 http://www.recovery.gov/Transparency/agency/Pages/agency_reporting5.aspx?agency_code=68
23 http://www.epa.gov/recovery/
24 http://recovery.doi.gov/press/bureaus/bureau-of-land-management/bureau-of-land-management-renewable-energy-authorization/
25 http://recovery.doi.gov/press/2009/09/recovery-act-awards-354497-solar-energy-projects-for-bosque-del-apache-sevilleta-national-wildlife-refuges/
26 http://www.energy.gov/8038.htm
27 http://www.pasbdc.org/index/downloads/pdf/StimulusPackageeBook.pdf
28 http://www.sbir.gov/about/index.htm
While the government seems to be exceeding its goals in small business contracting, different people and agencies have mixed reactions and several conflicting reports reflect that. The public sentiment of small business owners, especially women and minority owners, are not reflective of the success stories being trumped by SBA or the federal government. There has been a lot of push to create more “green jobs” and jump starting the economy by investing in “green economy”. But there is lack in clarity on how small business owners can get their piece of pie, especially in terms of federal contracts and grants.
So what does green economy and green jobs mean to domestic industries and how small and mid-size businesses can benefit from the “green” provisions in the American Recovery and Reinvestment Act of 2009? Below is a review and analysis of some of the aspects of Recovery Act that are directly related to small business and some ideas of how all small businesses can benefit from these stimulus funds.
Green Jobs are jobs directly involved in generating or supporting a firm’s green-related products or services and green economy includes primary occupations engaged in generating a firm’s green-related products or services, and the other support jobs created by the firm’s green related revenue. Industries that provide products or services related to renewable energy, increased energy efficiency, clean transportation and fuels, agriculture and natural resource conservation, and pollution prevention or environmental cleanup.3
Green Jobs Act, 2007 (GJA)
The Green Jobs Act of 2007 authorized $125 million per year to create Energy Efficiency and Renewable Energy Worker Training Program as an amendment to the Workforce Investment Act (WIA). The Program is administered by the U.S. Department of Labor (DOL) in consultation with the Department of Energy. The GJA authorizes spending for 5 related green job programs. Once Congress appropriates funding for the GJA, money flows through the following:
1. National Research Program, carried out by the Bureau of Labor Statistics.
2. State Research and Labor Exchange Program where state governments conduct their own labor market and related research and provide labor exchange services.
3. National Energy Training Partnership Grants, in which DOL directly awards funds to multi-stakeholder workforce training partnerships. Grants will be awarded to ensure geographic diversity across different regions of the country.
4. State Energy Training Partnership Program, in which DOL awards funds to state governments, which then re-grant the funds to multi-stakeholder workforce training partnerships.
5. Pathways Out of Poverty Program, in which DOL directly awards funds to training partnerships that have a specific focus on serving low-income individuals. The legislation does not specify the number of grants or the size of the grants in this program, but it does say that the grants "shall be awarded to ensure geographic diversity."
In all programs except the National Research Program, DOL will award the grants competitively.3
American Recovery and Reinvestment Act, 2009 (ARRA)
The Recovery Act’s three main goals are to:
• Create and save jobs
• Spur economic activity and invest in long-term economic growth
• Foster unprecedented levels of accountability and transparency in government spending.1
Consider this...
Minority-owned (20 percent)
Women-owned (19 percent)
Veteran-owned Businesses (9 percent)
…since at least 2007
A significant share of loans supported by Recovery Act funding has gone to:
Rural Businesses (26 percent)Minority-owned (20 percent)
Women-owned (19 percent)
Veteran-owned Businesses (9 percent)
…since at least 2007
Here’s a snapshot of available funds and grants:
INSERT MAP- http://www.recovery.gov/Transparency/Pages/home.aspx
Small Business Administration
The Obama administration’s plans to revitalize the secondary market for small business loans of¬fer the best means to break the current blockage in small business lending. Some of the Small Business Administration’s Recovery Programs that have already been implemented include, eliminating and reducing fees for borrowers on 7(a) loans and for borrowers and lenders on 504 loans and raising to 90 percent the guarantee on 7(a) loans from 75 percent and 85 percent depending on the size of loan. These programs also aim to double the surety bond guarantee from $2 million to $5 million, and provide small businesses with another tool to help them compete for federal construction and service contracts. SBA has also been active assisting the struggling small businesses with the new ARC loan program, which provides no-interest, deferred repayment loans of up to $35,000 to viable businesses to help them make debt payments and giving refinancing opportunities for certain eligible loans into SBA-backed 504 loans for expansion and job creation.
Eligibility
Small business loans and small business grants may be awarded to companies that meet the size standards that the U.S. Small Business Administration (SBA) has established for most industries in the economy. The most common size standards are as follows:
• 500 employees for most manufacturing and mining industries
• 100 employees for all wholesale trade industries
• $6 million for most retail and service industries
• $28.5 million for most general & heavy construction industries
• $12 million for all special trade contractors
• $0.75 million for most agricultural industries
Note that about one-fourth of industries have a size standard that is different from these levels, they vary from $0.75 million to $28.5 million for size standards based on average annual revenues and from 100 to 1500 employees for size standards based on number of employees.
Consider this...
From Feb. 17 to September 30, more than 1,260 lenders that had not made a loan since Oct. 2008 made 7(a) or ARC loans. Of those, over 760 had not made a loan since at least 2007
Government Contracts
Getting a federal contract is a process that involves accurate understanding of contracting rules and regulations. All small businesses that have been in business for more than two years and show a positive cash flow can bid for any size contracts.4; After selecting which NAICS code your small-business is classified under, register your company in the central Contractor Registration database.5 As of October, 2009 there are about 500,000 companies, including foreign businesses registered.
Next step would be to fill up the online representation and certifications application that can be found at ORCA. The OSDBU (Office of Small and Disadvantaged Business Utilization) main purpose is to help promote and assist small businesses in the federal acquisition process, ensuring that each Federal agency and their large prime vendors comply with federal laws, regulations, and policies to include small business concerns as sources for goods and services as prime contractors and subcontractors. A list of agencies with contact information and local addresses can be accessed at OSDBU (Office of Small and Disadvantaged Business Utilization) Director’s website.6
As there are multiple federal agencies and thousands of federal departments and offices, it is recommended to start with choosing three agencies to focus your initial research and looking for branch within 50 miles of your location. There are several S.B.A. resource partners and procurement centers that counsel and train small business owners in obtaining contracts, Small Business Development Centers, SCORE and Women’s Business Centers. Most of the Small Business Development Centers have a local procurement and technical assistant center that help make the process easier to obtain and execute federal contracts.7
Consider subcontracting and partnering. Research which companies in your industry have contracts and contact them to determine how your company can help fulfill their goals. Lourdes Martin-Rosa, American Express OPEN adviser on government contracting, recommends that small concerns getting started with federal contracting partner with a larger firm on their first contracts to get a feel for the process.5
With few exceptions, all federal agencies, and many state and local governments, use the size standards established by SBA. You can search for further information and for loan opportunities on the Small Business Administration’s website.
Consider this...
As of October 2009, SBA has supported $12.2 billion in small business lending with the approval of $8.9 billion in loans since Feb. 17
Agriculture and Natural Resource Conservation
Natural resource conservation refers to products or services designed to help conserve, maintain, and improve natural resources and the environment. Certain “green” agricultural businesses provide necessary inputs for the production of biomass energy including: wood, agricultural crops and animal wastes. These “crops” can be viewed as renewable and sustainable if managed properly. Other examples include food systems, forest and land management, and organic farming. Sustainable agriculture and forestry are achieved by governmental and private industries adopting certain industry standards utilizing established best management practices.
The Department of Agriculture (USDA) has been tasked with distributing nearly $28 billion in Recovery Act funds as well as a host of guaranteed loan programs which account for a total of $52 billion. The graph below shows the distribution of these funds. The largest expenditures are going towards Nutrition Assistance and Rural Community Development. Opportunities for small businesses are available in the areas of Conservation and Forestry and Rural and Community Development.8
Recovery Act funds are available to business of all sizes and the USDA urges business owners not to ignore these opportunities. “Prime contractors who receive logging or land clearing contracts valued over $550,000 are required to establish plans and goals for subcontracting with small businesses. Subcontracting is a good way for small businesses to participate in government contract opportunities that they could not otherwise be awarded.9
Through their Conservation and Forestry Grants USDA is promoting an increase in Green Jobs and the production on renewable energy resources. One such grant recently provided Treasury Valley Forest Products of Idaho with $500,000 in funding. These Recovery Act funds have allowed Treasury Valley Forest Products to increase their production of wood pellets which are a clean burning home heating fuel. “Altogether, the Recovery Act investments into Treasure Valley Forest Products will create 50 jobs: 15 jobs at the plant in Mountain Home and 35 jobs in the forest. This project shows the potential for rural communities to create the green jobs of the 21st century by using resources available locally like forests or agricultural bi-products to produce clean, renewable energy.10
Listed below are a few examples of contracts available through the USDA Forest Service:11
Hoyer Campground Reconstruction
Date of Announcement: March 9, 2009
Estimated Funding: $ 1,230,000 for Capital Improvement and Maintenance
County: Apache
Hoyer Campground is on the Apache-Sitgreaves National Forest in Apache County, Arizona.
The project provides additional economic benefit of sustaining tourism in one of the highest unemployment counties in Arizona. It replaces 30-year-old, non-accessible restrooms with accessible restrooms and the associated site work necessary for their accessibility. It also provides reconstruction of a road system for the campground. Hoyer Campground is located 20 minutes from the recreation and tourism-dependant towns of Eagar and Springerville, Arizona and 5 minutes from Greer, Arizona.
Forest-wide Road Realignment and Decommissioning
Date of Announcement: June 2, 2009
Estimated Funding: $ 2,000,000 for Capital Improvement and Maintenance
Partners: Arizona Game and Fish Department and the Wild Turkey Federation
Counties: Graham, Pima and Santa Cruz
The project entails the realignment of existing roads where no legal access is currently available, and unlikely to be secured in-place, to Forest Service lands; realignment of existing roads where safety and/or environmental concerns related to the current location will also occur; decommissioning many roads identified for disposal under the ongoing Travel Management Rule, which is nearing completion on several areas of the Coronado National Forest; and road surface improvements. This project will produce jobs in economically distressed counties in Arizona and will work with Arizona Game and Fish as well as the Turkey Federation to accomplish the goals for this project.
Enhance Safety and Condition of Forest Roads in Missouri
Date of Announcement: March 9, 2009
Estimated Funding: $ 369,000 for Capital Improvement and Maintenance
Counties: Statewide
This project will address an urgent backlog of needed road maintenance in the Mark Twain National Forest on routes damaged by extensive natural disasters (flooding, ice storms, and wind events) over the past two years. Economic recovery funding of $369,000 will provide new jobs in the private sector to accomplish this work. Forest Service roads in the Mark Twain intertwine with county road systems in 29 Missouri counties. These road systems are used for school bus routes, firefighting, ambulance services, and recreational activities. This project will have long-standing benefits to the community for daily activities and emergency services, as well as enhanced recreational opportunities.
Nebraska National Forest Recreation Sites Improvements and Deferred Maintenance Reduction
Date of Announcement: August 18, 2009
Estimated Funding: $ 644,000 for Capital Improvement and Maintenance
County: Cherry
This project will complete all deferred maintenance needs on the National Forest and Grasslands units in Nebraska. Most of these sites were built in the 1960s with few improvements since then. Upgrades are necessary to bring them into compliance with Forest Service standards and meet accessibility needs. Safety concerns will also be addressed. New wells for drinking water and new sanitary facilities are two examples of the improvements that will be accomplished with these funds.
Below is a partial list of NAICS codes associated with industries eligible for USDA Recovery Act funds:
111110 Soybean Farming
111140 Wheat Farming
111150 Corn Farming
111421 Nursery and Tree Production
111422 Floriculture Production
111991 Sugarbeet Farming
111998 All Other Miscellaneous Crop Farming
113110 Timber Tract Operations
113210 Forest Nursery/Gathering Forest Products
113310 Logging
115114 Postharvest Crop Activities
115310 Support Activities for Forestry
236115 Low Income Construction Contractors
236220 Commercial Building Construction
238130 Framing Contractors
238160 Roofing Contractors
The projects being funded by the USDA fall under a very large umbrella. The following list of available contracts and funding opportunities should give an indication of the variety of business opportunities available through the USDA.12 13
For more information or to request application materials regarding funding for Rural and Community Development please contact your local Rural Development Office for assistance.14
Clean Transportation and Fuels
Clean transportation refers to the research, development, and production of new technologies for energy storage and alternative fuels, as well as the engineering of improved fuel efficiencies and emissions reductions. Examples of these activities include: advanced batteries, fuel cells, electric, and hybrid vehicles, alternative fuels, public transit, and activities related to meeting fuel efficiency standards, and more.
It is the goal of the Department of Transportation (DOT) to use Recovery Act funds to transform travel in the United States. Through increased efficiency of fleet vehicles, improvements in highway infrastructure and development of a high-speed rail system, the DOT hopes to maintain a competitive transportation network in the 21st century.
The majority of the Recovery Act funds ($48.1 billion) that have been made available to the DOT will go towards highway, transit, bridge, rail, shipyard and airport construction and repairs nationwide.15 One program that falls under the watch of the DOT is the Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER) grant program. Through TRIGGER the DOT will provide funding for 43 transit agencies that are pursuing “cutting-edge environmental technologies to help reduce global warming, and lessen America's dependence on oil and create green jobs.”
Some of the winning project proposals have been awarded to:
California: AC Transit (Hayward, headquarters in Oakland), $6,400,000. Install photovoltaic capacity to generate "green" hydrogen: Install multiple PV modules at its Central Maintenance Facility in Hayward. Combined with AC Transit's already-installed solar capacity, this solar installation will produce the renewable electricity equivalent to what will be required to produce 180 kg/day of "green" hydrogen. Colorado: Denver Regional Transportation District (Aurora, headquarters in Denver), $770,000. Heating upgrades at East Metro bus maintenance facility: To improve the heating system at its East Metro bus maintenance facility located in Aurora, CO. This project will replace the three existing boilers with three new 15-psi, 20-ppm NOx boilers with Advanced Hawk Integrated Control Systems. The advanced control system will operate the boilers based on load demand as opposed to outside temperature.
Illinois: Champaign-Urbana Mass Transit District – CUMTD (Champaign-Urbana), $450,000. Facility upgrade with Geothermal Heat Pump System: CUMTD will replace the existing conventional HVAC system with an efficient geothermal HVAC system. Geothermal HVAC systems are highly effective systems with improved efficiencies over conventional systems due to the heat exchange process with an underground source that maintains near constant temperatures.
Michigan: Thunder Bay Transportation Authority – TBTA (Alpena), $2,590,000. Plug-in hybrid buses purchase: Replace 4 diesel buses with 4 series plug-in hybrid buses, operate in a non-urban/rural area and collect data for two years. Bay Area Transportation Authority (BATA) will provide technical assistance to TBTA.
For more information about the TRIGER program and other business opportunities made possible through Department of Transportation Recovery Act funds please visit the DOT American Recovery and Reinvestment Act of 2009 website. 16
In addition to the TIGGER grants the DOE has begun a Clean Cities program that is intended to transform the nation’s vehicle fleet. The Clean Cities program will provide funds for 25 cost-share projects on the state and local level that will in turn help develop public/private partnerships to promote alternative fuels and advanced vehicles, fuel blends, fuel economy, hybrid vehicles, and idle reduction.17 The goal of the Clean Cities program is to put upwards of 9,000 alternative fuel and energy efficient vehicles on the road. This increase in energy efficiency should reduce petroleum usage by 38 million gallons per year.18
Increased Energy Efficiency
Energy efficiency encompasses all changes that result in a reduction of the energy used for a given energy service (i.e., space heating, lighting, etc.) or level of activity. Examples include: insulation of a building can achieve the same desired temperature with less energy use; adopting green building design/LEED standards encourages downsizing or upgrading of HVAC, lighting and other energy systems, which reduces energy demand in the building; producing an energy efficient household appliance, such as a refrigerator or dryer, which delivers the same performance using less electricity; or providing engineering, consulting or research services on operations, materials, or technologies that improve energy efficiency.
The Department of Energy (DOE) has been allocated $36.7 billion in Recover Act funds. To date less than half of the available funds have been awarded. The status and progress chart shows the portion of the $36.7 billion that remain unallocated or awarded. The majority of the DOE funds, $16.8 billion, are available through the Office of Energy Efficiency and Renewable Energy (EERE).19 According to a February press release form the Office of EERE the $16.7 billion in funding is a nearly tenfold increase in available funds from the 2008 fiscal year. 20
The bulk of the EERE Recovery Act funds are going to support direct grants and rebates. The Weatherization Assistance Program has received $5 billion which will go towards weatherization and energy efficiency assistance for low income families. Another $4 billion will provide for rehabilitation and retrofitting of public housing units.
The Recovery Act also stipulates that $3.2 billion will go toward Energy Efficiency and Conservation Block Grants. These grants will help states, local governments, and tribal programs in their support of the development of energy efficiency and conservation strategies. Conservation and efficiency strategies include energy audit programs and projects to install fuel cells and solar, wind, and biomass power projects at government buildings.
The News page form the Recovery Act homepage has the following story regarding the Department of Energy’s Weatherization Program in Ohio. 21
-
“A $266.8 million Recovery grant from the Department of Energy’s Weatherization Program is allowing Ohio to boost the energy efficiency of more than 32,000 homes. Adding insulation, sealing leaks and modernizing heating and air conditioning equipment will reduce energy costs for Ohio homeowners by an average of 24 percent. In general, the Weatherization Program allows for an investment of up to $6,500 per home in energy efficiency upgrades and is available to homeowners making approximately $44,000 a year for a family of four. The Department has recognized Ohio as a leader in the weatherization program with 951 homes completed in July 2009.
Ohio allocated funds from the grant to local community agencies and other public and not-for-profit organizations. In addition, 54 independent contractors were hired to supplement existing contractors. It is estimated that by completion of the project at the end of March, 2012, 590 new positions will be created and 487 jobs retained.”
Below is a partial list of NAICS codes associated with industries that are eligible for DOE Recovery Act funds, in particular the $16.8 billion available through the Office of EERE:
221310 Water Supply and Irrigation Systems
221320 Sewage Treatment Facilities
236115 New Single-Family Housing Construction
236116 New Multi-Family Housing Construction
236117 New Housing Operative Builders
236118 Residential Remodelers
236210 Industrial Building Construction
236220 Commercial and Institutional Construction
237110 Water and Sewer Line and Related Structures Construction
237130 Power and Communication Line and Related Structures Construction
238151 Glass and Glazing Contractors - Residential
238161 Roofing Contractors -Residential
238162 Roofing Contractors –Nonresidential
238171 Siding Contractors - Residential
238172 Siding Contractors - Nonresidential
238211 Electrical Contractors - Residential
238212 Electrical Contractors - Nonresidential
238221 Plumbing, Heating, and Air-Conditioning Contractors - Residential
238222 Plumbing, Heating, and Air-Conditioning Contractors - Nonresidential
238311 Drywall and Insulation Contractors - Residential
238312 Drywall and Insulation Contractors - Nonresidential
Pollution Prevention and Environmental Cleanup
Pollution prevention refers to products that are designed to have minimal impacts on human health and the environment, and services that eliminate or reduce the amount and toxicity of potentially harmful substances at their source. Businesses that provide services and/or products related to controlling industrial and commercial emissions, environmental remediation, waste treatment, recycling, water conservation and treatment, and redevelopment are examples in this area.
The Recovery Act has provided $7.22 billion for projects and programs administered by the Environmental Protection Agency (EPA). The programs are intended to protect and promote both green jobs and a cleaner environment. The $7.22 billion in EPA funds have been allocated for environmental cleanup in the following areas:
Clean Water and Drinking Water Infrastructure
A total of $6 billion has been allocated to help states and local communities construct and restore their wastewater infrastructure. States will also be able to address their drinking water needs as well as restoration of water treatment and distribution facilities. The EPA has set aside $1.2 billion of the funding to go towards green infrastructure, water and energy efficiency, and environmentally innovative projects.
Brownfields Revitalization
Brownfield lands whose use or redevelopment may be complicated by the presence of hazardous substances or contaminants. Under the Recovery Act the EPA will award grants to local communities, states and tribes to facilitate the creation and retention of jobs and economic development. A portion of the Brownfield grants will go towards job training and community education regarding the sustainable reuse of Brownfield lands.
In addition to the Clean Water and Brownfield funds the EPA will use $1.1 billion to help reduce diesel emissions, cleanup leaks from underground petroleum storage tanks, and speed cleanup at Superfund sites.22
Opportunities are somewhat limited for small businesses though the EPA’s Recovery Act programs. However, job training programs which help train and prepare a “green” workforce are available. Please visit the EPA’s Recovery Act website for more information on educational opportunities.23
Renewable Energy Production
Renewable energy is energy generated from sustainable, natural resources— such as sunlight (solar), wind, water (hydro), geothermal heat, and biomass ( wood and wood waste, agricultural and energy crops & associated residues, animal waste, municipal solid waste, food products & processing waste), that can be naturally regenerated in the short-term. Related businesses include those producing renewable energy as well as firms that produce and supply parts or equipment used in energy collection and distribution such as solar panels or wind turbines.
Clean energy projects are being promoted and funded by several agencies through Recovery Act funds. The Department of Energy and Interior are pouring billions of dollars into the economy to stimulate growth in renewable energy production as well as improvements to the electricity grid. The Bureau of Land Management (BLM) currently has 241 applications for wind projects and 199 applications for solar projects to be located on public lands. According to the BLM, they have received “$305 million to help stimulate the economy through investments in the National System of Public Lands. A total of $41 million for 65 projects will be used to facilitate a rapid and responsible move to large-scale production of solar, wind, and geothermal energy, as well as the siting of transmission infrastructure on public lands to support renewable energy development.24
The Fish and Wildlife Service is also getting into the act by funding the installation of solar photovoltaic systems at the Bosque del Apache and Sevilleta National Wildlife Refuges (NWR) in New Mexico. These solar installation projects are just two of 129 energy-efficient, habitat-restoration, and other improvement projects underway in the Fish and Wildlife Service’s Southwest Region.25
In addition to its weatherization programs the DOE is heavily funding research and development of clean, renewable domestic energy. On September 22, 2009 Energy Secretary Stephen Chu announced an additional $550 million in awards through the Recovery Act program.
This announcement marked a milestone for the DOE with $1 billion dollars in total being awarded to companies investing in domestic renewable energy.26
The size and type of the contracts available through the DOE limit the opportunities for small to medium businesses in the initial round of funding. However, subcontracting opportunities are plentiful so please review the Government Contracts section of this newsletter for details on becoming a certified subcontractor.
The following NAICS codes are associated with industries that are eligible for contracting or subcontracting projects through the DOE Recovery Program.
541310 Architectural Services
541320 Landscape Architectural Services
541330 Engineering Services
541360 Geophysical Surveying and Mapping Services
541370 Other Surveying and Mapping Services
541380 Testing Laboratories
541420 Industrial Design Services
541614 Process and Logistics Consulting Services
541618 Other Management Consulting Services
541620 Environmental Consulting Services
541690 Other Technical Consulting Services
541712 Research and Development in the Physical, Engineering, and Life Sciences
562111 Solid Waste Collection
562112 Hazardous Waste Collection
562119 Other Waste Collection
562211 Hazardous Waste Treatment and Disposal
562212 Solid Waste Landfills
562219 Other Nonhazardous Waste Treatment and Disposal
562910 Remediation Services
562998 All Other Miscellaneous Waste Management Services
712130 Zoos and Botanical Gardens
712190 Nature Parks and Other Similar Institutions
813312 Enviro, Conservation and Wildlife Orgs
238152 Glass and Glazing Contractors - Nonresidential
238161 Roofing Contractors -Residential
238162 Roofing Contractors –Nonresidential
238171 Siding Contractors - Residential
238172 Siding Contractors - Nonresidential
238211 Electrical Contractors - Residential
238212 Electrical Contractors - Nonresidential
238221 Plumbing, Heating, and Air-Conditioning Contractors - Residential
238222 Plumbing, Heating, and Air-Conditioning Contractors - Nonresidential
238311 Drywall and Insulation Contractors - Residential
238312 Drywall and Insulation Contractors - Nonresidential
Consider this...
As of October 2, 2009 SBA has approved nearly 8,000 ARC loans totaling over $96 million.
Conclusion
The bulk of ARRA money has not yet been made available, as there are transparency and reporting requirements that have to be taken into account before the money is released. But if you do want to benefit from these provisions, you will have to do significant research and make your action plan now. Decide the product(s) or services(s) within the realm of broad industries mentioned above. Target specific government agencies and use the free resources and services provided by SBA and other organizations specially geared to help small businesses. If possible, identify the procurement people involved and program managers and attend as many briefings as possible. There are multiple opportunities for newer technologies and innovative ideas.
The U.S. Small Business Administration (SBA) Office of Technology administers the Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) Program. Through these two competitive programs, SBA ensures that the nation's small, high-tech, innovative businesses are a significant part of the federal government's research and development efforts. The current rise in government R&D spending means that SBIR funding (based on percentage of total R&D dollars) will rise. New opportuni¬ties are available, especially for firms that seek to contract with research-intensive agencies like NIH, the Department of Defense, and the Depart¬ment of Energy. Each federal agency runs its own SBIR program.27 Eleven federal departments participate in the SBIR program; five departments participate in the STTR program awarding $2 billion to small high-tech businesses. The U.S National Science Foundation administers the SBIR.GOV site on behalf of the federal government.28
So what’s the bottom line for entrepreneurs looking to capitalize on big changes afoot at SBA? Be Patient!
The SBA is in the midst of a significant upgrade of its capabilities, with the hiring of additional staff and the development of a host of new and improved programs. It will take some time for this new infrastructure to be put into place, but policies are moving in the right direction. With a new leadership team in place, SBA and its partner organizations should be able to provide a much more comprehensive set of support services and new programs to meet the needs of small business owners and aspiring entrepreneurs.
Wherever you find yourself in this process, regardless of where you live in the country, the ARRA spending will impact your community and there will always be some resources locally that will help you find out more.
SOURCES:
1 http://www.usda.gov/wps/portal/arrapie?navid=USDA_ARRA_OVEW
2 http://www.govexec.com/dailyfed/1009/100609rb1.htm
3 http://www.greenforall.org/files/faq-greenjobsact07.pdf
4 http://www.nytimes.com/2009/10/08/business/smallbusiness/08contracts.html?_r=4&8dpc
5 https://www.bpn.gov/ccr/default.aspx
6 http://www.osdbu.gov/offices.html
7 http://www.aptac-us.org/new/Govt_Contracting/find.php
8 http://www.usda.gov/wps/portal/arrapie?navid=USDA_ARRA_OVEW
9 http://www.timberlinemag.com/articledatabase/view.asp?articleID=2960
10 http://usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1RD?printable=true&contentidonly=true&contentid=2009/09/0479.xml
11 http://www.fs.fed.us/arra/arra-first-10-percent.pdf
12 http://edocket.access.gpo.gov/2009/pdf/E9-21030.pdf
13 http://www.rurdev.usda.gov/rhs/sfh/GSFH_Information/Builders.htm
14 http://offices.sc.egov.usda.gov/locator/app
15 http://www.dot.gov/affairs/2009/fta2209.htm
16 http://www.dot.gov/recovery/
17 http://www1.eere.energy.gov/cleancities/
18 http://apps1.eere.energy.gov/news/progress_alerts.cfm/pa_id=232
19 http://www.energy.gov/recovery/
20 http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=12243
21 http://www.recovery.gov/News/featured/Pages/OHWeatherizingHomes.aspx
22 http://www.recovery.gov/Transparency/agency/Pages/agency_reporting5.aspx?agency_code=68
23 http://www.epa.gov/recovery/
24 http://recovery.doi.gov/press/bureaus/bureau-of-land-management/bureau-of-land-management-renewable-energy-authorization/
25 http://recovery.doi.gov/press/2009/09/recovery-act-awards-354497-solar-energy-projects-for-bosque-del-apache-sevilleta-national-wildlife-refuges/
26 http://www.energy.gov/8038.htm
27 http://www.pasbdc.org/index/downloads/pdf/StimulusPackageeBook.pdf
28 http://www.sbir.gov/about/index.htm
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