Indiana Small Business Program (INSBP) — Frequently Asked Questions
What is the Indiana Small Business Program?
The Indiana Small Business Program is an initiative that Governor Braun created in Executive Order 26-17 to make it easier for certified Hoosier businesses to compete for state contracts. The program will provide greater opportunities for qualified Indiana small businesses to compete for State purchases and will increase the volume of state goods and services procured from Indiana-based small businesses.
Why was this program launched?
Governor Braun announced the program to strengthen the Hoosier small business environment and to expand opportunities for Indiana small businesses in state procurement. Indiana’s small businesses are described as “the engine of the Hoosier economy,” and the program is designed to make doing business with the state easier.
Who is eligible to participate?
To participate, a business must generate no more than $10 million in annual gross receipts averaged over the last two calendar years and meet at least one of the following criteria:
- Be registered as a domestic business with the Indiana Secretary of State.
- Pay a majority of payroll, in dollar volume, to Indiana residents.
- Employ Indiana residents as a majority of employees.
- Make significant capital investments in Indiana.
How does the program affect procurement?
Through expansion of the existing Buy Indiana program, more Indiana businesses will qualify to receive points in the procurement process.
How do businesses apply?
Beginning 10/1, new and existing registered bidders should access the Supplier Portal, select Bidder Profile, navigate to Identifications, and answer 'Yes' to indicate interest in the INSBP. Required documentation includes Secretary of State organizational filings, ownership/management information, and two years of business tax returns.
What support will IDOA provide to vendors?
In addition to connecting qualified small businesses with state procurement opportunities through Buy Indiana, the state will provide technical assistance, training and programming to help participating businesses better understand the state procurement process and strengthen their ability to compete for state contracts.
Does this program replace or change other state procurement preferences?
Gov. Braun announced in July that Indiana will end race- and sex-based contracting preferences following a legal opinion from Attorney General Todd Rokita finding race- and sex-based contracting preferences in the M/WBE components of Indiana’s Diversity Business Enterprises Program are unconstitutional under the Equal Protection Clause of the Fourteenth Amendment. Indiana’s Veteran Owned Small Business Program remains in place and is unchanged.
What will happen after launch?
IDOA will track applications, qualified vendors, bids, awards, and small business participation to confirm program impact and will use vendor and agency feedback to improve processes.
Does certification as an Indiana Small Business automatically result in a state contract?
No.
Does the program replace Buy Indiana?
No.
Is the threshold $10 million in Indiana-based revenue or total company revenue?
The $10 million threshold is for annual gross receipts averaged over the last two calendar years, regardless of where the receipts were earned.
For RFPs that include points for Indiana Small Business participation, what percentage of participation is required for each point level?
The Indiana Small Business Program will be scored on a five-point scale, with the potential for one bonus point. Points will be awarded based on the following scale: 2% = 1 point; 4% = 2 points; 6% = 3 points; 8% = 4 points; 10% = 5 points; and >10.01% = 6 points. Fractional points will be awarded on a graduated scale between whole points. The highest submission that exceeds the goal will receive six points (5 points + 1 bonus point). In the case of a tie, both respondents will receive six points.
For RFPs in flight and not yet due, will any require Indiana Small Business participation?
No. However, any RFPs released after 1-Oct-2026 will have Indiana Small Business rules available.
For any contracts that already contain Supplier Diversity points, what will happen now that the Indiana Small Business Program is live?
Any contracts that were already awarded will remain in effect under the terms of the original award.