Economically Disadvantaged Women Owned Small Business (EDWOSB)

What is Economically Disadvantaged Women Owned Small Business Edwosb?

An Economically Disadvantaged Women Owned Small Business (EDWOSB) is a designation granted by the Small Business Administration (SBA) to qualifying small businesses. This certification allows these businesses to compete for federal contracts set aside specifically for EDWOSBs, providing them with increased opportunities within the government contracting landscape.

Definition

An EDWOSB is defined as a small business that is at least 51% owned and controlled by one or more women who are considered "economically disadvantaged." This means the women owners must demonstrate that their personal net worth, income, and assets fall below certain thresholds established by the SBA. The specific requirements for economic disadvantage are outlined in 13 CFR Part 127. The EDWOSB program, authorized under Section 8(m) of the Small Business Act, aims to level the playing field for women-owned businesses that have faced systemic barriers to economic success.

Key Points

• Ownership and Control: The business must be at least 51% owned and controlled by one or more women. This ownership must be direct and unconditional.
• Economic Disadvantage: The women owners must meet specific economic disadvantage criteria established by the SBA, demonstrating limited personal financial resources.
• SBA Certification: While previously businesses could self-certify as EDWOSBs, the current regulations require EDWOSBs to be certified by either the SBA or a third-party certifier approved by the SBA.
• Set-Aside Contracts: EDWOSBs are eligible to compete for federal contracts specifically set aside for businesses with this designation, increasing their chances of winning government work.

Practical Examples

1. IT Services Company: A woman owns 51% of an IT services company. Her personal net worth and income fall below the SBA's thresholds for economic disadvantage. After obtaining EDWOSB certification, the company successfully bids on a set-aside contract to provide cybersecurity services to a federal agency.
2. Consulting Firm: A consulting firm is 60% owned by two women who meet the economic disadvantage criteria. The firm leverages its EDWOSB certification to win a contract to provide management consulting services to a government organization focused on small business development.
3. Construction Company: A woman-owned construction company, certified as an EDWOSB, secures a set-aside contract to renovate a federal building. The company successfully completes the project, enhancing its reputation and building a track record for future government contracts.