Small Disadvantaged Businesses
SMALL BUSINESS ADMINISTRATION
Small Business Act of 1953, as amended, Section 7(b)(2), Public Law 85-536, 15 U.S.C. 636(b); Public Law 95-507.
To ensure compliance with the constitutional standards established by the Supreme Court in Adarand Contractors, Inc vs. Pena, relative to Federal action programs that use racial or ethnic criteria as a basis for decision making.
Types of Assistance
Uses and Use Restrictions
The Small Disadvantaged Business (SDB) program is a procurement tool designed to assist the government in finding firms capable of providing needed services, while at the same time, helping to address the traditional exclusion firms owned by disadvantaged individuals from contracting opportunities. Participation in the SDB program and the benefits are restricted to those firms who have satisfied the eligibility requirements and have been certified by the Small Business Administration as an SDB.
Eligible applicant must be: A small business concern as defined in SBA rules and regulations; firms must be at least 51 percent unconditionally owned and controlled by one or more U.S. citizens who are socially and economically disadvantaged as defined by 13 CFR 124.105, 124.109, 124.110, and 124.111.
Socially and economically disadvantaged individuals and small businesses owned and operated by such individuals; economically disadvantaged Indian tribes including Alaskan Native Corporations and economically disadvantaged Native Hawaiian organizations.
Documentation to establish that all program eligibility criteria are met.
Application and Award Process
This program is excluded from coverage under E.O. 12372.
Electronic application through SBA's webpage at http://www.sba.gov
Applicant is notified of a decision by letter from the Office of Small Disadvantaged Business Certification and Eligibility.
Applications accepted on an ongoing basis.
Range of Approval/Disapproval Time
Approximately 75 days. The majority are completed within 45 days.
Requests for reconsideration of a declined application may be made within 45 days from the date of service of the decline letter.
Formula and Matching Requirements
Length and Time Phasing of Assistance
Three years renewable.
Post Assistance Requirements
Completed applications must be maintained.
Administrative Costs: FY 07 $1,235,000; FY 08 $1,294,000; FY 09 $1,459,000.
Range and Average of Financial Assistance
During fiscal year 2004, nearly 1000 new certifications were issued.
Regulations, Guidelines and Literature
13 CFR Part 124 8(a) Business Development; 124 Subpart B, Eligibility Certification and Protests Relating to Small Disadvantaged Business Programs.
Regional or Local Office
Office of Small Disadvantaged Business Certification and Eligibility, Small Business Administration, 409 3rd Street, S.W., Washington, DC 20416. E-Mail address: http://www.sba.gov/sdb
Web Site Address
Examples of Funded Projects
Criteria for Selecting Proposals