In Fiscal Year 2020, the federal government exceeded its small business federal contracting goal for the eighth consecutive year, awarding 25.6 percent in federal contract dollars to small businesses totaling $143.4 billion, an increase from the previous fiscal year of nearly $14 billion.
System for Awards Management (SAM)
Any entity wishing to do business with the federal government under a contract or applying for federal grants must be registered in the System for Awards Management (SAM). Completing the online registration can take some time depending on the size and complexity of your company.
Check out these helpful guides HERE.
The California Capital PTAC (and all PTAC’s nationwide) can walk you through your SAM registration and help you understand the complex language. Apply Now for our no-cost services!
Before you begin registration you will need required information about your business available for reference:
1. Tax ID Number
A Taxpayer or Employer Identification Number (TIN or EIN) is an identification number used by the Internal Revenue Service (IRS) in the administration of tax laws.
For sole proprietorships, we recommend a unique EIN for your company, not your social security number. If you have a DBA (doing business as) name for your sole proprietorship it will not be used for tax purposes. All businesses domiciled in the U.S., including sole proprietorships, are eligible to request an EIN from the IRS here.
2. NAICS and FSC Codes
The North American Industry Classification System (NAICS) categorizes products and service codes by industry sectors. These are mandatory 6 digit codes that identify what type of activity an entity performs, as well as the type of product or service offered. Your NAICS codes are also used to determine if you are a small business (see #5 below). To find your NAICS code(s), visit: http://www.census.gov/naics or apply for PTAC services for assistance.
FSC Codes are optional 4 digit codes included in the Product Service Code (PSC) list found in the Assertions section of a SAM entity registration. To locate the right one for your entity, go to FSC Codes.
3. Other business information
Including your Bank Account and Routing numbers.
4. Business Size
Determine whether your business is considered to be a small business: https://www.sba.gov/sizestandards.