Small Disadvantaged Business (SDB)

Since October 2008, small businesses can self-represent their status as a small disadvantaged business (SDB).

You do not have to submit an application to SBA for SDB status.

To self-represent as an SDB, register your business in the System for Award Management. However, you and your firm must still understand the SBA eligibility criteria for SDBs.  Generally, this means that:

  • The firm must be 51% or more owned and control by one or more disadvantaged persons.
  • The disadvantaged person or persons must be socially disadvantaged and economically disadvantaged.
  • The firm must be small, according to SBA’s size standards

Additional information can be found in the Small Business Administration Contracting Guide.

Class Deviation—Small Disadvantaged Business Threshold

Effective December 19, 2022, contracting officers shall use $850,000 in lieu of $750,000
for the net worth threshold in the small disadvantaged business concern definition at Federal
Acquisition Regulation (FAR) 2.101(b). Contracting officers shall also use the solicitation
provisions and contract clause provided in Attachment 1 of this deviation in lieu of the following
FAR provisions and FAR clause:

• 52.212-3 Offeror Representations and Certifications – Commercial Products and
Commercial Services.
• 52.219-1 Small Business Program Representations.
• 52.219-8 Utilization of Small Business Concerns.

To read more, click here. [December 2022]

Adjustment of Monetary-Based Size Standards, Disadvantage Thresholds, and 8(a) Eligibility Thresholds for Inflation

This rulemaking finalizes, without change, the U.S. Small Business Administration’s (SBA or Agency) 2019 interim final rule (RIN 3245-AH17) that adjusted monetary-based industry size standards ( i.e., receipts- and assets-based) for inflation that occurred since 2014. This rulemaking also includes three interim final actions. This rule is effective on December 19, 2022. Comments on the interim final provisions of this rule must be received on or before January 17, 2023. To read more on this, please click here. [November 2022]

Increasing the Share of Contract Dollars Awarded to Small Disadvantaged Businesses

Last year, the President made a commitment to increase the share of contract dollars awarded to small disadvantaged businesses (SDBs) to 15 percent by 2025. This memorandum provides guidance to agencies on steps they are expected to take in Fiscal Year (FY) 2023. Increasing the share of contract dollars awarded to SDBs is designed to support a more dynamic and resilient supplier base and create opportunities for entities owned by underrepresented individuals. To read more, click here. [October 2022]

For additional information on this topic, please contact our staff of experts at or 414-270-3600