SWiM, SWaM, SWuM - Risks to Your SWaM Status
SWiM, SWaM, SWuM
- Common corporate provisions could inadvertently threaten your certification as a Small, Women-owned, or Minority-owned business in Virginia.
If you are a Virginia-based small business that is currently participating in, or interested in participating in, the Small, Women-owned, and Minority-owned (SWaM) program administered by the Virginia Department of Small Business and Supplier Diversity (DSBSD), evaluation of current requirements is important to determine your eligibility to qualify for certification.
The SWaM program is designed to provide enhanced opportunities to small, women-owned, and minority-owned businesses that have received SWaM Certification. However, to maintain your certification and remain eligible for these enhanced opportunities, you need to ensure that your operations, including your corporate documents, are in line with the program's requirements at all times.
If you have achieved SWaM Certification, be aware that changes to your operations or changes to the applicable laws or regulations governing certification (including the interpretation of existing laws and regulations) can result in denial of an initial application, request for recertification, or result in a revocation of a certification.
As your business grows and evolves, you may make changes to your organizational structure, ownership, or other aspects that could impact your ability to qualify for SWaM certification. The SWaM Program is not static, and requirements of the program change periodically. There may also be changes to the interpretation of the existing program requirements. For example, in recent years a renewed focus on governing bodies like a Board of Directors and concepts commonly found in standard corporate documents, like a quorum requirement. Depending on the facts and circumstances, these provisions may be seen to thwart the ability of the qualifying owner(s) to operate the business.
A denial or revocation of certification may result in a required waiting period to re-apply and impact your current and future contracting opportunities.
Working with an attorney familiar with the application and recertification process can provide value in issue spotting and increase the likelihood of having a “clean” application process. If SWaM certification eligibility is important to you, raise this with your attorney when you are evaluating changes in ownership, operations, or want a checkup to make sure your documents and corporate filings are consistent with your actual operations.
Please request an appointment if you would like to discuss SWaM, DBE, or other certifications available for disadvantaged, micro, small, women-owned, or minority-owned businesses.