OAR 123-200-1600: Emerging Small Business (ESB) Certification Procedures — Eligibility Standards

(1) The ESB program is race and gender neutral and is based on the size of the business, not the individual applicant. (2) A firm’s certification as an ESB may only last for a maximum of 12 consecutive years from the original certificate date and qualify as a tier one or tier two firm. (a) A certified firm may only remain in each tier for a period of six years. (b) If the firm graduates to a tier two status, due to size, before exhausting six years of certification under tier one, the firm’s certification in tier two must not exceed a period of six years, regardless of the firm’s certification period as tier one. (c) If an applicant provides compelling information to show, to the satisfaction of the COBID, that he or she has not received an opportunity to bid on ESB projects during the 12 years of eligibility, the COBID will extend the certification of the firm for one additional year. A firm may receive the extension only once. The firm must provide a written request for an extension to the COBID, including any supporting documentation. (3) To be eligible for certification as an ESB, a firm must meet the following criteria: (a) Be in existence, operational, and in business for a profit. (b) The principal place of business must be located in the State of Oregon as determined by the address used to file federal income taxes. If the business uses a P.O. Box, the COBID may require additional documentation to verify location. (c) Be properly licensed and legally registered with the Secretary of State in the State of Oregon (i.e. registered as a domestic corporation, limited liability corporation, partnership, or assumed business name, etc.). (d) Must not be a subsidiary or parent company belonging to a group of firms that are owned or controlled by the same individuals if, taken together, the group of firms do not qualify. (e) Have average, annual gross receipts over the last three years that do not exceed monetary limitations determined by OBDD/COBID annually based on the Consumer Price Index. (f) If state or local law requires a person to have a particular license or other credential in order to own and/or control a certain type of firm, then the certified applicant(s) who owns and controls an ESB must possess the required license or credential. (g) The owner(s) must work a minimum of 20 hours per week for the business. (h) The business must have 19 or fewer full-time employees to qualify for tier one or have 29 or fewer full-time employees to qualify to tier two. The COBID calculates a full-time employee as follows: (A) Hours worked by all employees (part-time, seasonal, or full-time) shall be converted into equivalent hours; dividing the total hours worked by 2080. (B) The COBID does not consider owners of the business in the calculation of the equivalent employees. (C) The period of calculation shall be the same as the business’ tax year.