Pennsylvania Small Diverse Business and Small Business Programs: Status and What to Do

What it is

The Department of General Services (DGS) runs these programs through Business Inclusion and Supplier Development (BISD), called BDISBO on older pages. Firms self-certify as Small (SB), Micro or Midsize. DGS then verifies Small Diverse Business (SDB) and Veteran Business Enterprise (VBE) status from a third-party certificate. SB status opens Small Business Reserve set-asides. SDB and VBE status counts toward participation goals on larger state contracts.

What changed

• July 23, 2025: DGS launched the Micro Business and Midsize Business programs. It said complete applications can be certified in as little as two business days.
• The 2025-26 BISD annual report says Micro Business Reserve awards began under Policy Initiative 2025-01, and BISD set more than 336 SDB and VBE goals that year.
• We found no pause, end or court order affecting SDB or VBE as of October 10, 2026.

Who qualifies

• All tiers: for-profit, independently owned and not dominant in its field. Subsidiaries and firms owned mainly by another business or a trust (including an ESOP) do not qualify.
• Small: 100 or fewer full-time equivalent employees and $47 million or less in 3-year average gross revenue. Micro: 25 and $1 million. Midsize: 750 and under $141 million.
• SDB: a Small Business at least 51% owned and controlled by minorities, women, people with disabilities or LGBTQ people, holding a certificate from NMSDC, WBENC, NGLCC, Disability:IN, SBA 8(a) or the PA Unified Certification Program.
• VBE: a Small Business at least 51% owned by veterans or service-disabled veterans, with an SBA VetCert or Disability:IN certificate. A service-disabled veteran firm counts as both SDB and VBE.
• Out-of-state firms: yes. DGS defines a small business as a for-profit business in the United States, and its PRISM guide has no Pennsylvania office rule. There is no separate reciprocity step; DGS accepts the national certificates above.

What it means for your bids

• Small Business Reserve contracts are open only to certified SBs bidding as prime. The winner must do at least 51% of the work.
• SDB and VBE goals are set contract by contract on supplies and services of $250,000 or more and construction or design of $400,000 or more. Primes must meet each goal or document good faith efforts, or the bid can be rejected.
• An SDB subcontractor must perform at least 50% of its subcontract with its own employees.
• Midsize firms cannot use the Small Business Reserve. The DGS pages we read describe no price preference.

How to get certified

1. Register on the PA Supplier Portal for a 6-digit vendor number (1-3 business days): https://www.pa.gov/services/dgs/register-as-a-commonwealth-supplier
2. For SDB or VBE, get your third-party certificate first. DGS says this can take 90 days or more. WBENC and NMSDC charge fees; PA UCP and SBA 8(a) are free.
3. Apply in PRISM (https://bdisbo.prismcompliance.com/) with page 1 of your last three federal tax returns and your employee count.
4. SB, Micro and Midsize self-certification is approved at once. SDB and VBE verification takes about 10 business days once documents are complete.
5. DGS charges no fee. Renew every two years, during the 30-day window in PRISM.

Watch out for

• SDB and VBE verification relies on a current third-party certificate. Upload each renewal.
• City programs are separate. Philadelphia stopped enforcing its 35% minority-, women- and disabled-owned contracting goal in November 2025 (per Black Enterprise, citing The Philadelphia Inquirer).
• Federal DBE is a separate program.
• Free help: BISD at ra-smallbusiness@pa.gov or 717-783-3119; Supplier Service Center at 877-435-7363.

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Sources

• www.pa.gov/services/dgs/verify-my-small-diverse-business-or-veteran-business
• www.pa.gov/services/dgs/self-certify-my-small-business
• www.pa.gov/agencies/dgs/programs-and-services/business-inclusion-and-supplier-de
• www.pa.gov/agencies/dgs/programs-and-services/business-inclusion-and-supplier-de
• www.pa.gov/content/dam/copapwp-pagov/en/dgs/documents/small-diverse-business-pro
• pa.gov/agencies/dgs/newsroom/department-of-general-services-launches-new-mic
• pa.gov/agencies/dgs/programs-and-services/disbo/micro-midsize-certifications
• www.pa.gov/content/dam/copapwp-pagov/en/dgs/documents/small-diverse-business-pro
• www.pa.gov/content/dam/copapwp-pagov/en/dgs/documents/documents/procurement-form
• www.pa.gov/agencies/dgs/newsroom/following-governor-shapiros-executive-order-dgs
• www.blackenterprise.com/philadelphia-drops-dei-contracting

FindMyBids isn't affiliated with any certifying agency, and this isn't legal advice. Status can change quickly with court orders and new laws, so confirm with the program office before you rely on it.