Glossary / Business
Small Disadvantaged BusinessSDB
A small disadvantaged business is a small business that is at least 51 percent owned and controlled by one or more individuals who are socially and economically disadvantaged under SBA's definitions. The status is self-certified in SAM.gov; the 8(a) program is the certified, nine-year path for the same population. The government's statutory goal is 5 percent of prime contract dollars to SDBs, and the executive branch has set higher targets in recent years. Primes count SDB subcontracts toward their subcontracting plans.
Why it matters to your pipeline
SDB status is not a set-aside category of its own, but it counts toward agency and prime goals, so it makes a company a more attractive subcontractor and a line in the buyer's scorecard. Firms that qualify should hold the status in SAM and state it on the capability statement; those that also qualify for 8(a) should consider the certified program, which opens sole-source awards.
When this term shows up in an opening GovSmith finds for you, your vCM explains what it means for that pursuit and does whatever it calls for. You decide; we do the work.
Example
A prime behind on its SDB subcontracting goal places a $380K subcontract with an SDB-certified logistics firm found through the SBA's Dynamic Small Business Search, and reports it in its next subcontracting report.
Find out what applies to you
Some terms will matter to your business right away and some won’t for years. A vCM can tell you which are which.