Small Disadvantaged Business
While the 8(a) Program offers a broad scope of assistance to socially and economically
disadvantaged firms, SDB certification strictly pertains to benefits in federal
procurement. SBA certifies SDBs to make them eligible for special bidding benefits. Evaluation
credits available to prime contractors boost subcontracting opportunities for SDBs. We have become,
in effect, the gateway to opportunity for small contractors and subcontractors.
Qualifications
for the program are similar to those for the 8(a) Business Development Program. A small business
must be at least 51% owned and controlled by a socially and economically disadvantaged individual
or individuals. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian
Americans, and Native Americans are presumed to quality. Other individuals can qualify if they show
by a “preponderance of the evidence" that they are disadvantaged. All individuals must have a net
worth of less than $750,000, excluding the equity of the business and primary residence. Successful
applicants must also meet applicable size standards for small businesses in their industry.
