Small Disadvantaged Business (SDB)

The Small Business Administration (SBA) certifies SDBs for participation in federal procurements. This program is intended to overcome the effects of discrimination. SBA certifies small businesses that meet specific social, economic, ownership, and control eligibility criteria. Once certified, the firm is added to an on-line registry of SDB-certified firms maintained in Central Contractor Registration (CCR). Certified firms remain on the list for three years. Contracting officers and large business prime contractors may search the CCR registry for potential suppliers. The SBA certifies SDBs to make them eligible for special procurement consideration. Prime contractors are required to meet certain goals as part of their subcontracting plan, thus creating greater opportunity for SDBs.

Eligibility Requirements

Qualifications for the program are similar to those for the 8(a) Business Development Program. A small business must be at least 51 percent 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 qualify. 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 their equity in the business and their primary residence. Successful applicants must also meet applicable size standards for small businesses in their industry.

For additional information about the Small Disadvantaged Business program please visit the Small Business Administration's (SBA) SDB website or contact your NC PTAC Counselor for more information.