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California Department of General Services <br />Eligibility Requirements <br />In order for a small business to be eligible for certification, the small business must meet the following <br />requirements: <br />¦ Be independently owned and operated; <br />¦ Not dominant in field of operation; <br />¦ Principal office located in California; <br />¦ Owners (officers, if a corporation) domiciled in California; and, <br />¦ Including affiliates, be either, <br />• A business with 100 or fewer employees; an average annual gross receipts of $14 million or less, over <br />the last three tax years; <br />• A manufacturer* with 100 or fewer employees; or, <br />• A microbusiness. A small business will automatically be designated as a microbusiness, if gross annual <br />receipts are less than $3,500,000; or the small business is a manufacturer with 25 or fewer employees. <br />* For Small Business Certification purposes, a manufacturer is a business that is both of the following: <br />1. Primarily engaged in the chemical or mechanical transformation of raw materials or processed <br />substances into new products. <br />2. Classified between Codes 31 to 339999, inclusive, of the North American Industrial Classification System <br />(NAICS) Manual, published by the United States Census Bureau, 2007 edition. <br />EXHIBIT 3 <br />75B-9