Small Disadvantaged Businesses

Small Disadvantaged Businesses generally identifies ownership of a business as a diversity/minority entity or a business that can establish their "social" or "economic" disadvantage. Specific Identification related to the definition may change from time to time based on the users definition and often under intense scrutiny.

The Federal Government and other agencies will give preference to certain businesses for contract awards as an allowance to increase opportunities for contracting.

Small Disadvantaged Businesses: Persons who own 51% or more of a "small business" establish that they are disadvantaged within the meaning of subscribers regulations, and can prove they control their business.

Sample Eligibility Guidelines found by various subscribers (in general):

The subscriber determines specifics but this often has allowances for businesses owned by women, veterans, Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian-Pacific Americans, or other minorities found to be disadvantaged by the U.S. Small Business Administration (SBA). This may also include people with disabilities, disproportionately low incomes and high rates of unemployment, and that many may be socially and economically disadvantaged.

Small business - Often determined by annual gross receipts over the previous three fiscal years or amount of employees, personal Net Worth and typically with Independence - not tied to another firm in such a way as to compromise its independence and control.

Control - Applicant controls the direction of the management and policies of the firm. The owner must often have an overall understanding of, and managerial and technical competence and experience directly related to, the type of business in which the firm is engaged.