SDB stands for Small Disadvantaged Business.
Understanding Small Disadvantaged Businesses (SDBs)
A Small Disadvantaged Business is defined as a small business that meets specific criteria related to ownership and control. Here's a breakdown:
- Ownership and Control: At least 51% of the business must be owned and controlled by one or more individuals who are considered both socially and economically disadvantaged.
- Eligibility for Federal Programs: SDB status is crucial because it makes the business eligible for bidding and contracting benefit programs within the realm of federal procurement. This provides SDBs with opportunities they might not otherwise have.
Key Characteristics of an SDB:
| Feature | Description |
|---|---|
| Ownership | Minimum 51% owned by socially and economically disadvantaged individuals. |
| Control | The disadvantaged individuals must also control the management and daily business operations. |
| Small Business Size | The business must meet the size standards defined by the Small Business Administration (SBA) for its specific industry. |
| Benefit Programs | Being an SDB provides access to federal procurement benefits, helping them compete for and win government contracts. |
Benefits of SDB Status:
- Increased Opportunities: SDB status opens doors to set-aside contracts and other programs designed to help disadvantaged businesses succeed.
- Competitive Advantage: Provides an edge in bidding on federal contracts, leveling the playing field against larger corporations.
- Business Growth: Enhanced opportunities can lead to increased revenue and overall business growth.
In short, the SDB designation is a valuable tool for small businesses owned and controlled by socially and economically disadvantaged individuals, enabling them to participate more effectively in federal contracting.
