How to Apply for SBA Women-Owned Small Business Certification for Federal Contracts

What does SBA WOSB certification do?

The Women-Owned Small Business Federal Contract program is administered by the U.S. Small Business Administration. Certification allows eligible firms to compete for federal contracting opportunities reserved for certified program participants.

WOSB set-asides are not available in every industry. SBA identifies eligible industries by North American Industry Classification System (NAICS) code where women-owned small businesses are underrepresented. Some eligible industries are available to WOSBs generally, while others are restricted to Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs).

The certification is specifically for federal contracting. It is not a general certification guaranteeing preferences in private-sector purchasing, state contracts or local contracts.

Who qualifies as a Women-Owned Small Business?

A firm must first qualify as small under the SBA size standard applicable to its industry. It must then satisfy the ownership and control rules in 13 CFR Part 127.

For WOSB status, one or more women who are U.S. citizens must unconditionally and directly own at least 51% of the business. The detailed ownership test depends on the firm's legal structure. For example, SBA regulations apply specific rules to partnerships, limited liability companies and corporations.

Ownership alone is not enough. One or more qualifying women must control the management and daily business operations, including long-term decision-making. SBA regulations also require a qualifying woman to hold the highest officer position and possess managerial experience appropriate to operating the business.

What does direct and unconditional ownership mean?

SBA's rules require the qualifying ownership interest to be both direct and unconditional. In general, arrangements that transfer or potentially transfer the benefits of ownership or voting rights to another person can affect eligibility. The regulations contain detailed rules for stock, partnership interests, LLC membership interests, trusts, options and other ownership arrangements, so businesses with complex governing documents should compare those documents carefully with 13 CFR Part 127 before applying.

Who qualifies as an EDWOSB?

An EDWOSB must first satisfy all WOSB requirements. In addition, the business must be owned and controlled by one or more women who meet SBA's economic-disadvantage standards.

• Personal net worth: less than $850,000, subject to the exclusions and calculation rules in 13 CFR 127.203.
• Adjusted gross income: $400,000 or less averaged over the previous three years under SBA's economic-disadvantage test.
• Personal assets: $6.5 million or less under SBA's applicable asset test.

These figures should not be applied by simply adding values from a personal financial statement. Federal regulations specify exclusions and rules for determining personal net worth, income and assets. For example, SBA states that funds invested in an official retirement account are excluded from the personal-net-worth assessment.

Do you need SAM.gov before applying?

Yes. SBA's certification system requires the business to have an active and current SAM.gov registration. SAM.gov registration is also a core prerequisite for participating in federal contracting.

If your business has not completed that step, use the Helpydo procedure for registering an entity in SAM.gov for federal contracts before completing the WOSB certification process.

What documents should you prepare?

SBA Certifications provides application checklists and requests documents according to the firm's legal structure and certification path. Applicants should use the current checklist presented in the portal rather than relying on an old static document list.

The application must provide enough information for SBA to determine that the business meets the applicable requirements. This includes evidence concerning ownership, control and U.S. citizenship. EDWOSB applicants must also provide the financial information and supporting documentation SBA requires to evaluate economic disadvantage.

SBA may rely on the information submitted, request additional information, or independently verify information before making its decision. Applicants should therefore make sure that corporate records, ownership percentages, governing documents, management authority and information in federal registrations are accurate and consistent.

Can you use a third-party certifier?

Yes. SBA recognizes approved Third-Party Certifiers for the WOSB and EDWOSB programs. A firm using an approved third-party certification must still submit the required certification documentation and proof of citizenship through SBA Certifications before competing for WOSB program set-asides. Unlike SBA's free certification process, a third-party certifier may charge a fee.

Where do you apply?

New WOSB and EDWOSB applications are submitted online through SBA Certifications. The portal provides eligibility tools, application guidance, checklists and access to the certification application.

There is no fee to apply directly to SBA for WOSB or EDWOSB certification.

How long does WOSB certification take?

SBA states that, whenever practicable, it will make its determination within 90 calendar days after receiving a complete application package. This is tied to receipt of a complete package, not simply the date an applicant first starts or submits an incomplete application.

If SBA determines that information is missing or the application otherwise does not satisfy application requirements, an SBA representative may request additional information or documentation. Applicants should respond completely and promptly because SBA may deny certification if the firm fails to cooperate or provide requested information.

What happens after certification?

If SBA determines that the business qualifies, it issues a certification letter and designates the firm as a certified WOSB or EDWOSB in the applicable federal small-business systems. Certification makes the firm eligible to compete for WOSB Federal Contract program opportunities for which it otherwise qualifies, but certification does not guarantee a federal contract award.

Contract opportunities under the program are tied to eligible NAICS codes. Some are restricted to WOSBs and some specifically to EDWOSBs, so a certified firm should check the NAICS code and eligibility conditions for each procurement before bidding.

How do you keep the certification active?

Certified businesses must continue to meet program requirements and keep their SAM.gov profile current. SBA's current WOSB guidance states that annual attestation is presently in abeyance, so firms do not currently have to submit the annual attestation while that status remains in effect.

SBA also states that firms undergo a program examination every three years by SBA or a third-party certifier. Because maintenance requirements and the status of annual attestation can change, certified businesses should follow the current instructions in SBA Certifications rather than relying on the rules that applied when they originally received certification.

Common issues to check before submitting

• Do not confuse being generally woman-owned with being SBA-certified for the WOSB Federal Contract program. Certification is required to compete for WOSB program set-asides.
• Confirm that SAM.gov registration is active and current before applying.
• Check the SBA size standard for the business's applicable NAICS code instead of assuming that every independently owned company qualifies as small.
• Review governing documents for provisions that could prevent the qualifying woman from having unconditional ownership or actual control.
• For EDWOSB, use SBA's regulatory rules for calculating personal net worth, adjusted gross income and assets rather than relying only on headline threshold amounts.
• Upload all documents requested by the current SBA Certifications checklist and respond to requests for additional information.
• Do not assume certification makes every federal opportunity a WOSB opportunity. Program set-asides are limited to eligible industries and procurements.

Other federal contracting steps that may be relevant

WOSB certification is separate from the registrations and intellectual-property protections a business may need for other purposes. Businesses entering the federal marketplace should first complete SAM.gov entity registration. If the business later seeks financing for operations or growth, the separate SBA 7(a) loan application process has different eligibility and lender requirements.