In addition to the 8(a) Business Development program, the SBA administers the Small Disadvantaged Business (SDB) program. The SDB program is more limited in scope and certification applies only to benefits in federal procurement while 8(a) offers a broad scope of assistance to socially and economically disadvantaged firms.

Similar to 8(a), SDB is a certification for small businesses that meet specific social, economic, ownership, and control eligibility criteria. There is no fee to apply.

Benefits
SDB's are eligible for price evaluation adjustments of up to 10% when bidding on federal contracts in certain industries. The program also provides evaluation credits for prime contractors who achieve SDB subcontracting targets. The program is intended to help federal agencies achieve the government-wide goal of 5% SDB participation in prime contracting.

SDB General Requirements for Certification
A small business must be at least 51% owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States. Presumed disadvantaged groups are the same as the 8(a) program. Other individuals such as women can qualify if they show by a "preponderance of the evidence" that they are disadvantaged.

All individuals must have a net worth of less than $750,000, excluding the equity of the business and primary residence. Participants must also meet applicable size standards for small businesses in their particular industries.

More Information
To find out more about this program, visit the SBA web site. You can also apply for SDB certification online or get in touch with your SBA district office.