There are currently just under 50,000 total WOSB and EDWOSB firms in the federal marketplace sharing roughly $22B Dollars per year in federal sales. The ED/WOSB Certification has two certification types:

1.  WOSB Certification – the business is owned and controlled by a woman. 

2.  EDWOSB Certification – the business is owned and controlled by a woman and also meets the SBA requirements for being Economically Disadvantaged. 

Economically Disadvantaged

The SBA is currently in a conundrum, as it applies two different standards for an individual being considered economically disadvantaged based upon what certification the person/business holds. Review the table below to see the difference between the 8(a) program (minority owned) and 8(m) program (woman owned). Of course, it is possible to seek and become a certified 8(a) firm as a woman owned business, something to always keep in mind.

SBA Certification Type / Net Worth Requirement – Current

8(a) Disadvantaged Business Certification

Owner of the firm’s net worth does not exceed $250,000, excluding a) primary resident of the applicant owner, b) retirement accounts and c) the value of the ownership in the 8(a) firm.

8(m) EDWOSB Certification

Owner of the firm’s net worth does not exceed $750,000, excluding a) primary residence of applicant owner and b) the value of the ownership in the EDWOSB firm.

The SBA is looking to streamline some of their SBA Certification requirements and reconcile these differences, making the standard the same for both groups. The proposal is for the following two standards:

Initial Application:  $375,000 ANW (adjusted net worth) with exclusions for initially eligible 8(a) and 8(m) proposed new qualifications

Certification Renewal:  $750,000 ANW with exclusions.

As you can see, the new $375,000 ANW will be half of the current $750,000 ANW currently used to obtain entrance into the 8(m) or EDWOSB program. However, once a firm has the EDWOSB certification on the firm’s renewal the majority owner’s ANW is increased to the current $750,000 level. Therefore, obtaining the EDWOSB now under the current $750,000 ANW standard may be critical for many firms that are unable to meet the $375,000 future ANW.   

This rule change is likely to go into effect in January of 2020. Women looking to apply for EDWOSB or women currently in the WOSB program that may also qualify for EDWOSB, should be cognizant that time is of the essence as the window for some will literally be closing.

If you are considering a WOSB or an EDWOSB application and have any questions, we recommend the federal certification experts of ez8a. They can be reached at (859)442-3300.