123:2-16-02 Certification criteria.

(A) Unless certified pursuant to rule 123:2-16-04 of the Administrative Code, any business seeking certification in the EDGE business development program, established under section 123.152 of the Revised Code, shall first apply to the equal opportunity division of the department of administrative services for certification as an EDGE business enterprise. The application shall be made on forms provided by the division and made in a manner prescribed by the division.

(B) The equal employment opportunity coordinator of the department of administrative services shall certify a business as an EDGE business enterprise, provided the owner or owners of the business demonstrate all of the following:

(1) The business is a for-profit business entity and in business for at least one year prior to application for certification.

(2) The business is owned and controlled by a citizen or citizens of the United States.

(3) The business is owned and controlled by a resident or residents of the state.

(4) The business is both economically and socially disadvantaged or the business owner is both economically and socially disadvantaged.

(C) To demonstrate that a business applying for EDGE certification meets the criteria set forth in paragraphs (B) (1) to (B)(3) of this rule, the owner of the business must provide the equal opportunity division of the department of administrative services the following information in the form and detail as determined by the division:

(1) Business structure information.

(2) Previous three years of federal and state tax returns.

(3) corporate and personnel organizational information.

(4) Business sales and tax information.

(5) Personal information indicating citizenship and residence.

(6) Notarized statement from the owner certifying that the owner meets the defined criteria for economically and socially disadvantaged, and

(7) Any other relevant information the division deems necessary.

(D) To demonstrate that a business applying for EDGE certification meets the criteria set forth in paragraph (B)(4) of this rule, the owner of the business must provide the equal opportunity division of the department of administrative services the following information, in the detail and manner determined by the division;

(1) Financial records indicating the net worth of the business and personal net worth of the owner.

(2) If married, financial records of the owner's spouse.

(3) If applying for a social disadvantage classification based on race, color, ethnic origin, gender, disability, long-term residence in a qualified census tract or geographic location, information demonstrating membership in the claimed category.

(4) If applying for a social disadvantage classification based on personal disadvantage not common to other small businesses, information indicating the impediment to be considered and how the impediment has restricted professional acceptance, employment, or access to capital and credit, and

(5) Any other relevant information the division deems necessary.

(E) The equal employment opportunity coordinator of the department of administrative services shall consider all of the following to determine whether a business owner applying for EDGE certification meets the personal net worth threshold of paragraph (E)(1) of rule 123:2-16-01 of the Administrative Code:

(1) The business owner's personal income for the two years prior to application.

(2) The fair market value of all the business owner assets, whether encumbered or not.

(3) Asset transfers within the two years of application.

(4) Assets of the owner's spouse if applicable.

(5) Similar factors considered by the United States small business administration when making individual determinations of economic and social disadvantage pursuant to federal disadvantage business enterprise programs. Upon consideration of the above factors, the coordinator finds that the business owner meets the criteria set forth in paragraph (E)(1) of rule 123:2-16-01 of the Administrative Code, the coordinator shall determine that the owner is economically disadvantaged.

(F) The equal employment opportunity coordinator of the department of administrative services shall compare and consider the following factors to determine whether the business of the owner applying for EDGE certification is economically disadvantaged compare to similar business enterprises, as described in paragraph (D) of rule 123:2-16-01 of the Administrative Code:

(1) The annual accounts receivable

(2) Total assets

(3) Net sales

(4) Pre-tax profit

(5) Sales versus working capital ratio

(6) Business net worth If upon consideration of the above factors, the coordinator finds that the business meets the criteria set forth in this chapter, the coordinator shall determine that the business is economically disadvantaged.

(G) The equal employment opportunity coordinator of the department of administrative services shall determine that a business owner applying for EDGE certification is socially disadvantaged, if the business owner demonstrates personal disadvantage, as described in paragraph (J) of rule 123:2-16-01 of the Administrative Code, and the coordinator determines that the distinguishing feature or demonstrated disadvantage significantly inhibited the business owner's business success.

(H) The equal opportunity division shall administer the certification of the EDGE program in accordance to the general "disadvantaged business enterprise" certification guidelines issued by the United States small business administration in Title 13 of the Code of Federal Regulations, unless expressly stated otherwise.

Eff 11-26-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 123.152
Rule amplifies: RC 123.152
R.C. 119.032 review dates: 11/26/2009