Glossary Of Small Business Terms part 40

least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and whose management and daily business is controlled by one or more such individuals.

SOLVENCY The financial ability to continue business.

SOPs Standard Operating Procedures.

SPECULATIVE CASH BALANCES Cash necessary to take advantage of special opportunities.

STANDARD INDUSTRIAL CLASSIFICATION (SIC) CODE A code representing a category within the Standard Industrial Classification System administered by the Statistical Policy Division of the U.S. Office of Management and Budget. The system was established to classify all industries in the US economy. A two-digit code designates each major industry group, which is coupled with a second two-digit code representing subcategories.

STARTUP, or START UP or STARTUP KIT SBA maintains a generic startup kit and in many cases, startup kits for beginning a business in given states.

STTR Small Technology Transfer Program See Small Business Technology Transfer Program.

SUBCONTRACT A contract between a prime contractor and a subcontractor to furnish supplies or services for the performance of a prime contract or subcontract.

SUBCONTRACTING OPPORTUNITIES Select More... below.

SURETY BOND A three-way agreement between a surety company, a contractor and the project owner. If the contractor fails to comply with the contract, the surety assumes responsibility and ensures that the project is completed. By law, prime contractors to the federal government must post surety bonds on federal construction projects valued at $25,000 or more. Many state, county, city and private-sector projects require bonding as well. The SBA can guarantee bid, performance and payment bonds for contracts up to $1.25 million for small businesses that cannot obtain bonds through regular commercial channels. Bonds may be obtained in two ways: prior approval-contractors apply through a surety bonding agent. The guaranty goes to the surety; and preferred Sureties—preferred sureties are authorized by the SBA to issue, monitor and service bonds without prior SBA approval.

TAX or TAXES The contribution required of persons, groups, or businesses within a governmental jurisdiction for the support of governmental programs. Springtime brings a flood of questions about State taxes. We have compiled a list of State sites and their

Glossary Of SmallBusiness Terms part 41

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