Small Disadvantaged Business

Each year, the federal government contracts to Small Disadvantaged Businesses (SDBs). This amount makes up about 10% of all annual federal contracting dollars.

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Program eligibility

Each year, roughly $50 billion in federal contracts is awarded to SDBs. SBA’s Office of Government Contracting and Business Development monitors federal contracting. This includes the progress of 24 Executive Branch agencies in contracting with SDBs.

You may register your business as a SDB if you meet the following criteria:

• The firm must be 51% or more owned and controlled by one or more disadvantaged persons.
• The disadvantaged person or persons must be socially disadvantaged and economically disadvantaged.
• The firm must be small, according to SBA’s size standards.

How to register

To register, you must sign up at SAM.gov. Select “Small Disadvantaged Business” during the sign-up process. This will help federal procurement officials to identify your business during market research.

Additional programs

Your firm might also meet the requirements for any of the following programs:

• The 8(a) Business Development program. This program provides managerial, technical, and contractual help to SDBs. It also helps to ready the firm and its owners for success in the private industry. Eligibility for the 8(a) program has extra requirements.
• The HUBZone program. This program helps small businesses gain preferential access to federal procurement opportunities. These preferences go to small businesses that obtain HUBZone certification. This is done in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in a HUBZone.
• The Women-Owned Small Business Federal contracting program. Contracting officers can set aside certain federal contracts for eligible women-owned small businesses.
• The Service-Disabled Veteran-Owned Small Business program. Procuring agencies have the authority to set aside certain acquisitions for exclusive competition. This is intended to benefit service-disabled veteran-owned small business concerns.