Is this a legitimate opportunity for a new SDVOSB or Scam?
I recently launched my own digital marketing agency after several years of freelance marketing and graphic design work. I’m registered under NAICS codes 516210, 541430, 541613, and 541810.
This summer, I completed my SAM.gov registration and received my WOSB and SDVOSB certifications.
I was recently approached by a larger company that has been in business for about 14 years and supports government customers with fuel, facility, transportation, lodging, janitorial, groundskeeping, and other operational services.
They proposed partnering to pursue SDVOSB set-asides. They would handle sourcing and proposal drafting, then send me weekly lists of businesses to contact for quotes. They would also cover upfront costs, but charge approximately 40% interest on the amount borrowed.
I’m very new to government contracting, don’t currently have the funds to cover significant upfront costs, and they’re offering to provide guidance and teach me the process.
Does this sound like a reasonable opportunity, or are there major red flags I should be looking for?
For those with experience in SDVOSB contracting, partnerships, or subcontracting: what questions would you ask before signing anything?
Also, is ~40% interest remotely normal for this type of arrangement?