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Illinois Metro East Small Business Development Center at SIUE

Growing Your Business

School of Business

Overview

Small Disadvantaged Business (SDB)

The SBA administers two particular business assistance programs for small disadvantaged businesses (SDBs). These programs are the 8(a) Business Development Program and the Small Disadvantaged Business Certification Program. While the 8(a) Business Development Program offers a broad scope of assistance to socially and economically disadvantaged firms, the SDB Certification Program strictly pertains to benefits in federal procurement. 8(a) firms automatically qualify for SDB certification.

What exactly is a Small Disadvantaged Business (SDB)? The U.S. Small Business Administration reports the eligibility as to what is considered an SBD.

A small business must be at least 51% owned and controlled by a socially and economically disadvantaged individual or individuals. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans are presumed to qualify.

All individuals must have a net worth of less than $750,000, excluding the equity of the business and primary residence.
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