To ensure that small businesses receive an equitable amount of federal funding, the Small Business Administration (SBA) offers several contracting support programs. Small firms with a GSA Schedule can take advantage of these kinds of programs to increase their competitiveness in the government contracting market. Economically Disadvantaged Women-Owned Small Business is one of these initiatives (EDWOSB). With this business certification, your organization has easier access to programs and possibilities for contracts that are tailored to your company's success in the federal market. We'll discuss what an EDWOSB is, what are the EDWOSB certification requirements and whether your business qualifies so you may benefit from these programs that offer contracting support.
What is a small business owned and operated by economically disadvantaged women (EDWOSB)?
Some contractors want to know the distinction between women-owned small businesses (WOSBs) and women-owned small businesses that are economically disadvantaged (EDWOSBs). An EDWOSB is a small business that is regarded to be economically disadvantaged and is owned at least 51% by one or more women. You instantly qualify for the Women-Owned Small Business Program if you meet the requirements to be an EDWOSB (WOSB). However, you do not immediately qualify as an EDWOSB if you first meet the requirements to become a WOSB. A larger net is cast by the WOSB than by the EDWOSB. Although the EDWOSB certification is quite similar to the WOSB curriculum, there are a few differences that we'll go over below.
If you fulfill the EDWOSB certification requirements they qualify your business for special set-asides, which are contracts reserved specifically for small businesses, both of these programs are very advantageous for small business GSA Schedule contractors. A GSA contractor will have direct access to some of these set-aside contracts if they can prove that they are a WOSB or EDWOSB.
Do I Meet the EDWOSB certification requirements?
Similar to a WOSB, an EDWOSB also needs to be economically disadvantaged to qualify. Women must own at least 51% of the business to qualify. Like with Women-Owned Small Businesses, this economically disadvantaged lady must make both short-term tactical decisions and long-term strategic ones.
You must meet certain criteria for personal net worth, adjusted gross income, and fair market value of all your assets to be deemed economically disadvantaged. To qualify as economically disadvantaged, you must have a personal net worth of less than $750,000, an average annual adjusted gross income of no more than $350,000 over the three years before certification, and a total fair market value of no more than $6 million for all of your assets.
Use the size criteria tool on the SBA website if you're unsure if your company even counts as a small business. Your principal North American Industry Classification (NAICS) code and a few additional variables that the tool will help you consider determine the size of your business.
You can become certified as an Economically Disadvantaged Women-Owned Small Business if you satisfy all of these conditions.
How To Fulfill EDWOSB Certification Requirements
You will no longer be able to self-certify as an EDWOSB as of July 2020 due to changes made to the certification procedure. On your certify.sba.gov account, you must enter the following details if you are a new applicant:
Information on SAM.gov registration
A copy of the female owner's citizenship documentation (s)
More business-related paperwork
Joint-venture contracts (if applicable)
If you choose to be certified by a third party, you must submit your application through the certify.sba.gov portal. The SBA has granted third-party certification to four organizations:
Hispanic Chamber of Commerce in El Paso
National Association of Women Business Owners
American Women's Business Council
Council for Women's Business Enterprise
The Benefits Of Small Business Certification
The common objective of these two initiatives—WOSB and EDWOSB—is to support women in getting government contracts and finding plenty of opportunities there. The federal government's ultimate objective is to award at least 5% of all federal contracts each year to women-owned small businesses. Given that the United States government is the biggest purchaser of goods and services worldwide, this is a substantial number.
The federal government helps level the playing field for women company owners by allocating this sum to WOSB and EDWOSBs each year. It also restricts competition for some contracts to companies that take part in the program for women-owned small enterprises. Some contracts are only available to women-owned small businesses, but there are even more contracts that are only available to women-owned small businesses that are also economically disadvantaged. On the other end of the scale, you can pursue possibilities that are specifically for small enterprises.
Although many women are aware that they can apply for a WOSB, some are not aware that they also fit the requirement for being economically disadvantaged. Due to this, fewer companies that would have been eligible for EDWOSB accreditation have applied, which reduces competition for those who do.
If you fulfill the EDWOSB certification requirements you will have many contracting options available to you because you can compete for both small companies set apart contracts and sole source contracts.
You can also join forces with seasoned government contractors in joint ventures or collaborate with other companies through contractor teaming arrangements (CTA).
If you feel you meet these EDWOSB certification requirements, you want to think about applying to the EDWOSB Program. Applying for this certification carries no risk. If you are turned down, you simply carry on conducting business as usual as a contractor.
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