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EDGE Certification

EDGE FAQs
for
Businesses

1. What does the acronym "EDGE" stand for?

Encouraging Diversity, Growth and Equity

2. What is the purpose of the EDGE program?

EDGE is a small business assistance program for economically and socially disadvantaged business enterprises.

EDGE establishes goals for state agencies, boards and commissions in awarding contracts to certified EDGE-eligible businesses. EDGE applies to procurements of goods and services, professional services, information technology services, construction, architecture or engineering.

3. What are the benefits for EDGE participants?

The EDGE program offers the following three benefits to certified program participants:

A Contract Assistance Program with an established EDGE procurement goal or subcontracting goal for selected contracts. Waivers will be available for companies that, despite their best efforts, are not able to reach their participation goal.

A Mentor-ProtegeProgram that pairs larger companies as mentors to EDGE- certified businesses in a way that is commercially beneficial to both.

A Bond Guaranty Program that provides bonding or working capital to eligible companies.

4. What businesses are eligible for EDGE certification?

EDGE certification eligibility criteria includes a demonstration of socially and economically disadvantaged business status as established by the Ohio Department of Administrative Services' Equal Opportunity Division.

Additionally, the business owner(s) must be a U.S. citizen and Ohio resident.

The company must have been in business at least one year prior to applying for certification as a EDGE. This requirement shall not apply to joint venture applicants.

The business must be at least 51 percent owned and controlled by EDGE-eligible owner(s). The EDGE owner(s) must have day-to-day control over the business and must exercise final authorization over any significant aspect of daily operation of the business, including operational, financial, management, human resources and policy decisions.

The business may be operated by an individual, partnership, corporation or joint venture.

5. Can my business become certified if I am located in a "Qualified Census Tract"?

Yes, if your business is located in a qualified census tract no proof of social disadvantage is required.

6. What areas of Ohio fall within the "Qualified Census Tract"?

A qualified census tract is based on median household income level, unemployment level and/or poverty level within the state as prescribed by Title 26 of the U.S. Code Section 42(d). To view areas of Ohio that qualify, visit http://map.sba.gov/hubzone/hzqry.asp?state=OH.

7. What is economically disadvantaged?

Economically disadvantaged individuals are those whose personal net worth does not exceed program thresholds. Maximum personal net worth at program entry is $250,000, ranging up to $750,000 following program admission.

How do you establish that you are economically disadvantaged?

Each proprietor, general and limited partner or each stockholder (claiming socially & economic disadvantage and representing 51% ownership and control of the company) must complete a "Personal Financial Statement" demonstrating that the personal net worth of the owner(s) is no greater than $250,000 upon program entry and no greater than $750,000 following program admission, excluding the owner('s) primary residence and any interest in the business under which certification is being requested?

8. What is socially disadvantaged?

Socially disadvantaged individuals have been subject to societal prejudice or cultural bias because of their identities as members of groups, without regard to their individual qualities.

How do you establish that you are socially disadvantaged?

An applicant may establish social disadvantage in one of two ways:

1) By a business owner showing personal disadvantage due to color, ethnic origin, gender, physical disability, long-term residence in an environment isolated from the mainstream of American society or location in an area of high unemployment; OR

2) By the business owner showing that he or she is socially disadvantaged based on other similar reason to those listed above, which are not common to most small business owners. The social disadvantage must be chronic or substantial, not fleeting or insignificant.

May a business participate in the EDGE program if none of the owners are socially disadvantaged?
Yes, a business can be certified as socially disadvantaged if it is located in a qualified census tract.

9. How do I apply for certification if I believe I'm eligible?

Complete the EDGE certification application available from:

Ohio Department of Administrative Services
Equal Opportunity Division
EDGE Certification Office
30 E. Broad St., 18th floor
Columbus, Ohio 43215-3414
(614) 466-8380
www.das.ohio.gov/EDGE

10. How long may a business participate in the EDGE program?

Generally participation may not exceed 10 years.

11. How are program participants monitored for continued eligibility?

Businesses are recertified to participate in the EDGE program every two years. Recertification may include an onsite review and businesses will be required to submit various statements.

12. What is the difference between the EDGE program and the Minority Business Enterprise (MBE) program?

Both programs assist economically disadvantaged businesses. MBE certification is limited to members of four statutorily designated racial groups. MBE procurement involves sheltered market or set-aside contracts let by virtually all state agencies. EDGE certification is open to any Ohio-based small business that has been certified as socially and economically disadvantaged. EDGE procurement does not involve sheltered markets or set-aside contracts.

13. What's the purpose of the EDGE Mentor-ProtegeProgram?

The purpose is to increase opportunities for participating businesses to improve their operations, build business alliances, develop joint ventures and promote their businesses.

14. Who is eligible to apply to be a protege?

Any EDGE-certified business that has been in operation for three years or more with proven management and increasing revenues is eligible to be a protégé. The applicant must be willing to complete a diagnostic evaluation of the company and be willing to commit to an 18-month relationship with the mentor corporation.

15. Who should consider being a mentor?

Established businesses dedicated to community and corporate leadership are encouraged to mentor an EDGE-certified company. Fostering such a relationship provides the mentor with the opportunity to increase and diversify its supplier base. Mentors are provided with a supportive and interactive environment in which to work with other like-minded mentors dedicated to strengthening local business talent.

16. What are the costs associated with being a mentor?

There is no charge for applying or participating in the program. There may be incidental costs associated with providing developmental assistance to the protégé.

17. Is the mentor required to provide any contracts to the protege?

No. Although the mentor is not required to provide any contracts to the protégé, two measures of success of the mentoring relationship is the protege's increased business volume and future growth potential. Both mentor and protegeare encouraged to nurture a vendor relationship where it is mutually beneficial.

18. What is the process for participating in the EDGE Mentor-ProtegeProgram?

Mentor and protégé participants are selected through a competitive application process. Applications may be obtained online at www.das.ohio.gov/EDGE or by contacting:

Ohio Department of Development
Division of Minority Business Affairs
EDGE Mentor-ProtegeProgram
77 S. High St., 26th floor
Columbus, Ohio 43215-6130

19. What procurement opportunities are covered under the EDGE program?

EDGE goals apply to all categories of procurements -- goods and services, professional services, information technology services, construction/architectural and engineering.

20. How will I know whether a particular bid opportunity has an EDGE goal?

The EDGE goals will be included in the Invitation to Bid (ITB), Request for Proposal (RFP) or direct agency opportunity.

21. What if I try to get an EDGE subcontractor for a project, but am unable to do so? May I still bid?

The contractor may still submit a bid. If a contractor in good faith demonstrates due diligence in securing the services of EDGE subcontractors, but is unsuccessful, a waiver may be granted.

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