What Do Economically Disadvantaged Women-Owned Small Business (EDWOSB) Certification Requirements Look Like?

Are you a female small business entrepreneur searching for assistance in expanding your enterprise? Approximately 20.9% of enterprises, or 1.2 million, were owned by women in 2020, according to a report on the Annual Business Survey. This represents an increase of 1% from 2019.


These female-owned small companies are becoming a larger portion of the economy. For many entrepreneurs, being certified is the first step toward increasing their success. These can aid in their consumer acquisition efforts and assist them to obtain greater credibility and visibility. So here is everything you need to know about the prerequisites and benefits of the EDWOSB certification if you are a developing woman-owned small business.



An EDWOSB certification is what?

Organizations with the NAICS code where women are underrepresented make up the economically disadvantaged women-owned small business (EDWOSB) certifications. For women-owned small businesses (WOSB) and EDWOSB certification-owned companies, set-aside contracts are available.

EDWOSB certification-owned women-owned firms are eligible for both EDWOSB and WOSB set-aside contracts.

What criteria must a person meet to be certified as an EDWOSB?

As of July 15, 2020, self-certification is no longer permitted. This indicates that a tighter and more formal approval process is required for WOSB or EDWOSB certification. These conditions must be met:

1. One or more women who are citizens of the United States must possess 51% of the business.

2. Women must control 51% of the company, including long-term strategic planning.

The woman must be fully owned at all times.

The woman needs to demonstrate her management skills.

3. The female proprietor should be able to show that she has what it takes to run the company to apply for EDWOSB certification.

4. The company is required to follow the NAICS regulations.

Must employ no more than 500 people

Real estate revenue must be less than $2 million.

The combined income of the services and goods must not exceed $4.5 million.

5. The female or female's net worth should not be greater than $750,000. (This excludes the ownership in the WOSB firm, their residence, and the sum of money allotted for retirement accounts)

6. The woman's or women's adjusted gross income for the previous three years should not have exceeded $350,000.

7. The owner's total assets, excluding their retirement funds, should not be worth more than $6 million.



Understanding these set-aside options of EDWOSB certification will enable you to reach your full potential as a seller in the federal contract market as a small business, especially if you are a WOSB or EDWOSB. Check out our website blog to find out more about how you can use your GSA Schedule.


 

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