Small Disadvantaged Business Certifications

Major reforms of federal government procurement programs are being implemented to assist Small Disadvantaged Businesses (SDB). The SBA now processes SDB certification applications. To qualify as an SDB, a firm must be owned and controlled by one or more individuals who are socially and economically disadvantaged. Congress has directed that individuals who are members of certain ethnic groups are presumed to be disadvantaged. Other persons, including women and persons of any race, can also qualify by establishing their disadvantaged status.

In the past, the government has relied on self-certification for purposes of SDB eligibility, which allowed firms to identify themselves as meeting the requirements for certification. Under the new rule before the small business concern can become eligible to receive a benefit as an SDB, each firm must be certified as an SDB by the SBA.

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