Allegiant Stadium Vendor Information

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Small Business Definition Frequently Asked Questions (FAQ)

Senate Bill 1 (SB1) of the 30th Special Session of the Nevada State Legislature provides the framework for the funding and construction of an NFL stadium project. SB1 includes a requirement that at least 15 percent of stadium project construction be subcontracted to small local businesses.

Section 31.5 of SB1 defines a small local business as follows:

  1. A business shall be deemed to be a small local business for the purposes of this section if:
    1. The business is financially and operationally independent from any other business;
    2. The business is not temporary and has operated for at least 4 years before entering into the contract or agreement;
    3. The business maintains its principal place of business in a fixed location within this State;
    4. The business has obtained all necessary licenses and registration within this State; and
    5. The annual revenues of the business for each of the immediately preceding 3 fiscal years has not exceeded:
      1. For public works projects, $20,000,000;
      2. For any other construction projects, $10,000,000;
      3. For any goods, materials, equipment and general services contracts, $10,000,000;
      4. For professional services including, without limitation, architectural and engineering services, $2,500,000; and
      5. For trucking services, $3,500,000.

The following are frequently asked questions about the small local business definition.

How long must a business have been in operation?
A small local business must have been in operation for, at a minimum, the four most-recent consecutive years. The four-year timeframe is measured from the day the business submits its official bid. For example, if a business submits its bid on January 15, 2018, it must have been in operation prior to January 15, 2014.
Is a business required to have been based in Nevada during that time?
Yes. To qualify under SB1, a small local business must have maintained its principal place of business within the state of Nevada during the four most-recent consecutive years.
Do the annual revenue limits apply to gross revenue or net revenue?
The annual revenue limits apply to the gross revenues of a business. Gross revenues are the total amounts the business received from all sources during a fiscal year, without subtracting any costs or expenses.
How do the annual revenue limits apply to each category?
A business’ gross revenue generated in each of the listed categories must not exceed the specified limit in any of the three preceding fiscal years. For example, a business generating gross revenues of $18 million, $21 million and $15 million from public works projects would not qualify since the category limit is $20 million in any single year.
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