Does my business qualify for favorable treatment in federal contracting as an Economically Disadvantaged Women-Owned Small Business?

In some cases, the benefits available under the Women-Owned Small Business (WOSB) Federal Contracting Program may be available only to Economically Disadvantaged Women-Owned Small Businesses (“EDWOSBs”). To qualify as an EDWOSB, the business concern must meet all of the requirements for a WOSB, that is, it must be (1) considered a “small business” in the economic industry in which the contract is sought, and (2) at least 51% unconditionally and directly owned and controlled by one or more women who are U.S. citizens. In addition, the business must also be at least 51% owned by one or more women who are economically disadvantaged. In general, a woman is “economically disadvantaged” if she can demonstrate that her ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business. In determining economic disadvantage, the U.S. Small Business Administration considers a variety of factors, including that the woman must have a personal net worth of less than $750,000, excluding her ownership interest in the concern and her equity interest in her primary personal residence. The test does not take into account community property laws when the woman has no direct, individual, or separate ownership interest in the property. For more information, see our article on What It Takes To Qualify as a Women-Owned Small Business (WOSB).