Must be a small business

Must be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the U.S.

Must demonstrate potential for success

Initially, the individual's net worth, after excluding the individual's equity in the firm and the equity in the primary residence, may not exceed $250,000. SBA will also consider the individual's average two-year income, fair market value of all assets, access to credit and capital, and the financial condition of the applicant firm in evaluating economic disadvantage. Once accepted into the program, the net worth criteria is $750,000.

Sole-source contracting opportunities

Set-aside 8(a) procurement opportunities

Subcontracting opportunities

Automatically qualify as SDB with all of its benefits (see below)

Must meet requirements for social and economic disadvantage

Must qualify as a small business for primary NAICS code

51% owned by one or more socially and economically disadvantaged individuals

All individuals must have a net worth of less than $750,000, excluding the equity of the business and primary residence.

Price evaluation adjustment up to 10%

Evaluation credit – Prime contractors can get credit for using SDBs as subcontractors.

Unlimited - As long as meets eligibility requirements

Must be a small business

Principal office must be located in HUBZone

Must be owned and controlled by one or more U.S. citizens

Special bidding opportunities (competitive, sole-source)

10% price evaluation preference on full and open contracts

Subcontracting opportunities on federal contracts

Can qualify for higher SBA-guaranteed surety bonds on construction and service contract bids

Firms in Federal Empowerment Zones and Enterprise Communities (EZ/EC) can also benefit from employer tax credits, tax-free facility bonds, and investment tax deductions.

Must be an existing for profit business and meet federal definition of a small business based on its primary SIC/NAICS code as described by SBA

Disadvantaged owner must be a U.S. citizen and meet federal definition of socially and economically disadvantaged as defined in 49 CFR 26.67.

Disadvantaged owners must hold at least 51% ownership in the firms and must control day-to-day operation and management of the business.

When a firm’s primary line of work requires a professional license, the disadvantaged owner must hold the license.

Personal net worth of a disadvantaged owner cannot exceed $750,000.