What is Women-Owned Small Business (or WOSB) Certification?
Definitions & Qualifications:
WOSB – According to the Small Business Administration, a WOSB, or Women-Owned Small Business is defined by the following requirements:
- At least 51% owned and controlled by one or more women who are U.S. citizens
- Ownership must be direct and not subject to conditions
- A woman or women must manage daily operations and provide verifying documents
- Be at or below the small business size standard for the primary NAICS code, the NAICS code assigned to the solicitation, and the contract for which it submits an offer
EDWOSB – the following requirements apply to qualify as an Economically Disadvantaged Women-Owned Small Business:
- Own at least 51% of business and satisfy all conditions for a WOSB
- Personal net worth of less than $750,000
- Adjusted annual income of $350,000 or less
- Market value of all assets does not exceed $6 million (including business value and primary residence)
Women-Owned Small Business Certification empowers businesswomen to gain favor for lucrative government contracts at local, state, and federal levels. Becoming certified opens the door to competing successfully with larger organizations.
Any qualifying female business owner (Small Business, Large Company/Enterprise, or Disadvantaged Small Business) who wants to do business in the government sector can apply for certification and future contracts.
In this post, we’ll define WOSB Certification and provide best practices for getting started with certification for your business.
What is Women-Owned Small Business (WOSB) Certification?
WOSB certification is a practice used by the US government (and some others) to award contracts to small businesses that are operated by at least one U.S. citizen female who holds 51% or more interest in the company. Contracts that are valued at less than $250,000 are automatically set aside for small businesses.
There is also a certification for economically disadvantaged businesses (EDWOSB) that can meet additional requirements.
Why is Women-Owned Small Business (WOSB) Certification Important?
Certification gives you access to contracts that are set aside specifically for qualified WOSBs and EDWOSBs. At least 5% of all government contracts awarded in the US are granted to women-owned for-profit businesses (nonprofits are ineligible for certification and most SBA small business programs).
Being certified allows economically disadvantaged and other women-owned businesses to work with larger companies that support their growth. Registering to do business with the US government gives access to networking opportunities, mentoring, and other resources to grow your business.
According to the National Association of Women Business Owners (NAWBO), in 2017, more than 11.6 million businesses were owned by women. WOSBs generated $1.7 trillion in sales and produced almost 9 million jobs.
Benefits of Women-Owned Small Business (WOSB) Certification
- WOSB/EDWOSB have access to contracts through SAM.gov that are otherwise awarded to large corporations. The US government has a goal of awarding at least 5% of all contracts to Women-Owned Businesses. There are also many major corporations that are the largest buyers of goods and services provided by certified women-owned businesses.
- Exclusive WOSB training and educational programs can help you develop steady business with both local and federal government, but also grow your existing business.
- Certified women-owned businesses enjoy increased marketing exposure and added trust from potential customers.
How to Apply for WOSB or EDWOSB Certification
- Before you can apply for Women-Owned certification with the Small Business Administration, you must register to do business with the federal government at SAM.gov. Once you have registered, you can be certified as a WOSB here.
- If you have not formed your company yet, contact us through our Help Center to find out how to get an LLC or Corporation formed.
- Here is a list of search results for WOSB Certification assistance.
System for Award Management (SAM) Registration
If your business is already established, at least 51% owned by one or more females, and daily operations are conducted by women owners, you are eligible to register with SAM.gov to be awarded WOSB, and EDWOSB government contracts. You must have a Dun & Bradstreet or D-U-N-S number to register.
- Apply for a Dun & Bradstreet (D-U-N-S) number here. The application takes about 10 minutes and you should have your number within 1-2 business days. You’ll receive a letter by mail if more information is needed to approve your application.
- Gather information for SAM registration. The following information is required to apply:
- Legal business name, physical address, your entity type, and some general information about your business.
- Taxpayer Identification Number (TIN) and taxpayer name. Contact us if you need help applying for a Taxpayer Identification Number.
- Contractor and Government Entity (NCAGE) code if you already have one. If you don’t, one will be assigned at the end of your SAM registration.
- Banking and financial information to set up Electronic Funds Transfer (EFT).
You will also need to answer some questionnaires and complete the supplemental SBA page if you are registering as a small business.
- Set up a Login.Gov account. It just takes a few minutes and is required as part of the SAM registration.
If you have a state-issued photo ID and a social security number, identity verification is usually quick.
This Quick Start Guide will walk you through the process.
- Click the Get Started button under Register Your Entity on SAM.gov to complete your registration. You can also check your registration status on that page.
WOSB or EDWOSB Preparation and Application
New and established Women-Owned Small Businesses are encouraged to apply for certification. Check out the Small Business Administration’s website on the Women-Owned Small Business Federal Contracting Program for more information and free training webinars. There are also companies that will handle your certification for a fee. A few of those organizations are listed here.
New Businesses: Form an LLC, Corporation, or DBA/Fictitious Name, check eligibility on the SBA’s website, and collect documents for the application.
You’ll need the following documents and information to apply for these programs.
- Birth certificates, naturalization papers, or unexpired passports for each woman business owner.
- Articles of organization/incorporation, partnership or joint venture agreements, voting agreements, and any amendments to these documents.
- Issued stock certificates and stock ledger (if applicable).
- Assumed/fictitious name (DBA) certificate if you’re using one.
- Three most recent personal tax returns including W-2s and all schedules for each woman business owner and her spouse (for EDWOSB).
- IRS Form 4506-T, Request for Tax Transcript for each woman business owner and her spouse (for EDWOSB).
Existing Businesses: Check eligibility on the SBA’s website. Collect the following documents and complete the application.
- Birth certificates, naturalization papers, or unexpired passports for each woman business owner.
- Articles of organization/incorporation, partnership or joint venture agreements, voting agreements, and any amendments to these documents.
- Issued stock certificates and stock ledger (if applicable).
- Assumed/fictitious name (DBA) certificate.
- Three most recent personal tax returns including W-2s and all schedules for each woman business owner and her spouse (for EDWOSB).
- IRS Form 4506-T, Request for Tax Transcript for each woman business owner and her spouse (for EDWOSB).
Visit SBA.gov to complete your online application once you have collected all your documents. Also, the SBA’s Office of Women’s Business Ownership is an excellent resource to keep on hand throughout your business journey.
To Summarize
SBA certification as a Women-Owned Small Business (WOSB) or Economically Disadvantaged Women-Owned Small Business (EDWOSB) can open doors to a steady stream of contract work both in your state and for the federal government. Registered businesses have access to contracts that would otherwise go to larger companies. Through the SBA’s program, you can also grow your existing business by using their many helpful tools, resources, and free training.
Take these steps to register for the US government’s System for Award Management.
- Apply for a Dun & Bradstreet (D-U-N-S) number.
- Gather legal and business information, Taxpayer Identification Number (TIN), and banking/financial information to set up Electronic Funds Transfer.
- Set up your Login.Gov account using your business email address.
- Register for the System for Award Management at SAM.gov.
Once your SAM (System for Award Management) registration is active, take these next steps to apply for SBA certification. You’re almost there!
- If you’re a new business, contact us to help you form your LLC, Corporation, or DBA. Our friendly and knowledgeable team can help you decide which formation is right for your business. Existing businesses can skip to Step 2.
- Collect documents such as naturalization papers, birth certificates, articles of organization, stock certificates, and tax returns for the past three years. You’ll also need IRS form 4506-T, Request for Tax Transcript for each woman business owner and her spouse (if applicable).
- Create your SBA account and complete the online application. Start the application by clicking the Am I Eligible? Button.
We hope this article has been helpful in walking you through the SBA WOSB certification process. If you are currently a WOSB or EDWOSB, please share your comments on the application process below.