The government is giving out billions in federal contracts. Learn why you should register your foreclosure cleanup business with HUD and other government contracting agencies.
The Department of Housing and Urban Development ("HUD") is the Federal agency that is ultimately responsible for national policies and programs that address America's housing needs. By its very nature, HUD purchases a great number of products and services from small business vendors throughout the country.
Federal Government Spends Big on Small Business Contracts
The Federal government, in general, is a huge spender when it comes to procuring goods and services from small businesses. And with the advent of a foreclosure-ridden real estate market, property preservation companies and foreclosure cleanup businesses are perfectly poised to take advantage of government contracting opportunities.
Government Pays Out Billions to Small Business Vendors
Take a look at some staggering figures below. The list shows the top 15 states where federal contracts were awarded to small businesses. The amount spent on small business awards is in the billions of dollars:
- Texas: $60.5 Billion
- Virginia: $52.6 Billion
- California: $50.9 Billion
- Maryland: $26.2 Billion
- Pennsylvania: $17.6 Billion
- District of Columbia: $16.6 Billion
- Florida: $15.9 Billion
- Missouri: $14.3 Billion
- Arizona: $13.7 Billion
- Massachusetts: $13.1 Billion
- New York: $12.7 Billion
- Connecticut: $12.7 Billion
- Illinois: $12.3 Billion
- Georgia: $10.9 Billion
- Washington: $10.2 Billion
Source: Federal Spending via FPDS, Fiscal Year 2008
Registration is Key to Getting Government Contracts
If your business is not registered with HUD and other federal agencies, you are missing a big piece of the income pie for your small business. Proper database registration is the key to getting government contracts.
There are several formal databases that various government agencies access for contract procurement purposes; but, there are a few databases in which a small business must be registered to participate in procurement opportunities.
Once you are properly registered in HUD and other federal databases, your small business' contact information will be accessible by all federal agencies who seek out small businesses for contract purposes.
License and Insurance Requirements
You will need to be properly licensed and insured to do business with HUD and any area of the government, so make sure you have registered your foreclosure cleanup business with your county and that you have obtained necessary liability insurance for your business, as well as any other insurance you may need, based on your foreclosure cleanup business' services.
Have You Secured an EIN?
You will also need to have your business affairs in order when it comes to tax reporting procedures (i.e., have you secured an EIN?).
An EIN (Employer Identification Number) is also known as a Federal Tax Identification Number. This number is used to identify your business entity. Getting an Employer Identification is a free service offered by the IRS and can be obtained rather quickly.
Dun & Bradstreet Number
You will also need a Dun & Bradstreet (D&B) number as part of the registration process. Dun & Bradstreet provides the D-U-N-S Number, which is simply a unique nine digit identification number for each physical location of your business. D-U-N-S Number assignment is free and is required to register your business with the federal government for contracts.
Easy Electronic Registration
Many registration opportunities exist online, so you can start your registration process quickly. Also, don't discount registering with your local housing authorities for small business contracting opportunities. Many housing authorities have electronic registration options via their housing authority websites as well.
Stimulus Money Abound!
Stimulus money is now all over the place for small businesses seeking to take advantage of it. Good luck in registering your foreclosure cleanup business for government contracting opportunities.