WOSB and EDWOSB certification

About the program

The SBA's Women-Owned Small Business (WOSB) program helps firms owned and controlled by women compete for federal work. The "ED" in EDWOSB stands for economically disadvantaged, a stricter financial test. Congress has set a government-wide goal that 5% of federal prime contracting dollars go to women-owned small businesses. The SBA also identifies industries, by NAICS code, where women-owned firms are substantially underrepresented, and contracts in those industries may be set aside for WOSB or EDWOSB firms. Firms are certified directly by the SBA.

Key qualifications

• Ownership. One or more women own at least 51%, and the ownership is unconditional. It cannot be subject to arrangements that shift the benefits to someone else. Seller-financed purchase agreements can be acceptable if they follow ordinary commercial practice and the owner retains control.
• Control. A woman must manage day-to-day operations and make long-term decisions. Extra scrutiny applies where a man holds the licenses or technical skills and has equity in the firm.
• Capability. The owner needs the managerial and educational background to run the firm. She does not have to hold the technical license herself.
• Time commitment. In most cases, the owner cannot hold a full-time job elsewhere while operating the firm.
• Economic disadvantage (EDWOSB). SBA sets limits on personal net worth, income, and total assets, with specific exclusions such as primary-residence equity and retirement accounts. A spouse's finances and business ties can also be reviewed. We confirm the current dollar limits with you before applying.

Joint ventures and performance rules

Unlike some other SBA programs, joint ventures for WOSB and EDWOSB firms do not need SBA approval, but they must meet requirements: the WOSB must manage the venture, take at least 51% of profits, and keep the final original records at completion. On set-aside awards, the firm must perform a minimum share of the work itself, which varies by contract type.

Why pair it with a MAS?

WOSB is the most widely held socioeconomic certification, so standing alone it offers less differentiation than some others. Combined with a MAS, though, the effect is significant: in our schedule data, a schedule roughly triples the average sales of WOSB firms, and about two-thirds of women-owned schedule holders work in IT and professional services. The combination puts you in more market research, more set-aside options, and more eBuy requests.