There are several changes for Women-Owned Small Businesses (WOSB) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSB) that go into effect on July 15, 2020. Detailed information about the changes can be found here: https://advocacy.sba.gov/2020/05/11/sba-final-rule-women-owned-small-business-and-economically-disadvantaged-women-owned-small-business-certification/. This blog will summarize those changes.
Certification Required for WOSB and EDWOSB participating in the Procurement Program for Women-Owned Small Business Concerns
Up until now, WOSB and EDWOSB wishing to compete for contracts set aside form them in the Procurement Program for Women-Owned Small Business Concerns could self-certify. As of July 15, 2020, in order to participate in that program, the company must have certification from identified government entities and/or third-party certifiers. If a company is not certified, it will not be eligible for the program.
Other WOSB may continue to self-certify to receive contract awards outside of that program and will count towards an agency’s goal for WOSBs.
New Rules for Economic Disadvantage Thresholds
There are new rules regarding who may be considered economically disadvantaged for purposes of qualifying as an EDWOSB. The net worth of an individual claiming disadvantage must be less than $750,000. However, funds invested in an IRA or other official retirement account will not be counted towards the individual’s net worth. The SBA will also presume that an individual is not economically disadvantaged if her adjusted gross income average exceeds $350,000 over the past three years or if the fair market value of all her assets exceeds $6 million.
If your company needs advice regarding its certification as an EDWOSB or WOSB, please contact Danielle Dietrich at 412-227-0284 or email@example.com.