The Women-Owned Small Business Federal Contract Program, administered by the U.S. Small Business Administration, is designed to expand federal contracting opportunities for small businesses owned and controlled by women. It includes two designations: women-owned small business (WOSB) and economically disadvantaged women-owned small business (EDWOSB). Congress has set a government-wide goal for the share of prime contract dollars awarded to women-owned small businesses.
WOSB: the base designation
In general terms, a WOSB must be a small business that is at least 51 percent unconditionally and directly owned and controlled by one or more women who are U.S. citizens. Women must manage the day-to-day operations and make long-term decisions. As with other SBA programs, the regulations define ownership and control in detail, including how they apply to things like voting rights, board composition and operating agreements.
EDWOSB: adding economic disadvantage
An EDWOSB meets the WOSB requirements and, in addition, the women owners meet economic disadvantage thresholds related to personal net worth, income and total assets. The SBA sets those thresholds and may update them, so check sba.gov for current figures rather than relying on numbers you have seen elsewhere.
Every EDWOSB is also a WOSB, but not every WOSB qualifies as an EDWOSB. That distinction becomes important when you look at which set-asides you can pursue, because some industries are open only to the economically disadvantaged designation. Firms that may qualify for both should understand the difference before deciding how to apply.
Why the industry matters
A distinctive feature of this program is that set-asides are tied to industries. Contracting officers may set aside contracts for the program only in NAICS codes where the SBA has determined women-owned small businesses are underrepresented or substantially underrepresented.
- In industries designated as underrepresented, set-asides are generally available to EDWOSBs.
- In industries designated as substantially underrepresented, set-asides can be open to all WOSBs, including EDWOSBs.
The SBA publishes the list of eligible NAICS codes. Before you plan your strategy around WOSB set-asides, confirm that your primary codes are on the current list. The program also allows sole-source awards under certain conditions.
Certification is required
For years, firms could self-certify for this program. That changed in October 2020, when the SBA began requiring formal certification, either directly through the SBA or through an approved third-party certifier, to receive WOSB and EDWOSB set-aside awards. Certified firms must also follow the program’s recertification and reporting requirements to keep their status.
Practical steps
- Review your ownership documents to make sure they reflect unconditional ownership and control by women.
- Check whether your NAICS codes are eligible for WOSB or EDWOSB set-asides.
- Gather financial documents if you plan to apply as an EDWOSB.
- Keep your SAM.gov registration consistent with your certification.
Women’s Business Centers, SBA district offices and APEX Accelerators offer free guidance on the program. If your ownership structure includes investors, trusts or complex agreements, talk to a qualified professional before applying.