Strategic Consulting Solutions, Inc.

Women’s Small Business Contracting: Does Your Business Qualify?

In 1994, The Federal Acquisition Streamlining Act (FASA) set a goal to award 5 percent of government contracts to Women-Owned Small Businesses (WOSBs). Earlier this year, 22 years after the goal was originally set, the SBA announced that the Federal Government had finally met — and exceeded — that goal. In 2016, the government made history by awarding 5.05 percent of contracting opportunities to WOSBs — and that number should be on the rise in the coming years. With that being said, now is an ideal time to be a Women-Owned Small Business. Does your business qualify as a WOSB with the Small Business Administration? Use this simple outline from the SBA to find out if your business is eligible:

Eligibility Requirements

  • Meet the small business size standard for the primary NAICS code and contract
  • Be at least 51% unconditionally and directly owned by women who are U.S. citizens
  • Women must manage the day-to-day operations
  • Women must make the long-term decisions for the business
  • A woman must the hold highest officer position in the business
  • This woman must work at the business full-time during normal working hours.
  • No minimum amount of time for the business to be operational

If your small business meets all of the above qualifications, you may also qualify as an Economically Disadvantaged Women Owned Small Business (EDWOSB):

  • Personal net worth (assets minus liabilities) is less than $750,000 excluding:
    • Ownership in business and primary personal residence
    • Income reinvested or used to pay taxes of business
    • Funds reinvested in IRA or other retirement account*
    • Transferred assets within two years, if to or on behalf of immediate family member for select purposes
  • Adjusted gross income average over three years is $350,000 or less excluding:
    • Income reinvested or used to pay taxes of business
  • Fair market value of all assets is $6 million or less.

As of this year, there are 9.8 million women-owned businesses in the United States, yet women remain underrepresented in the world of government contracting. However, with the percentage of contract awards on the rise, now is the time to see if you quality with the SBA. If you check all the boxes to qualify as a WOSB and/or a EDWOSB, the next step is to become certified. Good luck on the journey to a government contract award!

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