Economically Disadvantaged Women-Owned Small Business (EDWOSB)

An Economically Disadvantaged Women-Owned Small Business (EDWOSB) is a subcategory of the WOSB federal contracting program that applies additional personal financial thresholds to the woman owner, qualifying the firm for set-aside competitions in NAICS codes designated by the SBA as substantially underrepresented in federal contracting by women-owned firms.

What is an EDWOSB?

The EDWOSB designation exists within FAR Subpart 19.15 alongside the broader WOSB category. To qualify, a firm must first meet all WOSB requirements (51% women ownership, women control, women management), and additionally each woman claiming ownership must demonstrate economic disadvantage by meeting three financial tests: adjusted gross income averaged over three years must not exceed $400,000; personal net worth must not exceed $750,000 (excluding equity in the primary residence and the firm itself); and total assets must not exceed $6M.

The SBA publishes separate lists for NAICS codes where WOSBs are "underrepresented" (eligible for WOSB set-asides) and "substantially underrepresented" (eligible for both WOSB and EDWOSB set-asides). Contracting officers may set aside acquisitions for EDWOSBs in substantially underrepresented NAICS codes, creating a narrower competitive pool than a WOSB set-aside and providing a stronger preference for firms that meet the higher eligibility bar.

In USAspending data, EDWOSB set-aside awards carry the type-of-set-aside code "EDWOSB." Certification is through the SBA portal; self-certification was eliminated in 2020. All documentation for the economic disadvantage determination must be submitted with the application.

Why EDWOSB Matters for Government Contractors

EDWOSB certification provides access to a subset of set-aside solicitations with the smallest eligible competitor pool among WOSB-family designations. For firms that genuinely meet the financial thresholds, the designation is worth pursuing alongside standard WOSB certification because it does not require a separate certification process, the SBA evaluates both simultaneously. Firms that grow above the economic disadvantage thresholds over time may remain eligible as WOSBs even if they lose EDWOSB status, providing a natural progression path.

Example

A professional services firm owned 60% by a woman with $320,000 in average annual income, $580,000 in personal net worth, and $4.2M in personal assets obtains both WOSB and EDWOSB certification from the SBA. The firm wins a $900,000 EDWOSB set-aside contract from the EPA under NAICS code 541620 (Environmental Consulting Services), which appears on the substantially underrepresented list. Only two other firms competed.

Frequently Asked Questions

Can an EDWOSB firm also compete in WOSB-only set-asides?

Yes. An EDWOSB firm qualifies for all set-asides available to WOSBs, as EDWOSB is a subset of WOSB. The EDWOSB designation simply adds eligibility in the substantially underrepresented NAICS codes on top of the standard WOSB eligibility in underrepresented codes. Firms should certify both statuses to maximize bid-eligible solicitation volume.

What happens if the woman owner's finances grow above EDWOSB thresholds?

If a woman owner's income, net worth, or assets exceed the economic disadvantage thresholds, the firm should recertify its status. It may retain WOSB certification if it still meets the ownership and control requirements. Loss of EDWOSB status does not automatically disqualify the firm from WOSB set-asides in underrepresented NAICS codes. The SBA requires annual recertification of size and economic disadvantage status.

Is the economic disadvantage test the same as the 8(a) program test?

The EDWOSB thresholds are similar to but not identical to those used in the 8(a) Business Development Program. The 8(a) program requires a net worth below $850,000 (adjusted periodically), and income and asset tests vary. The EDWOSB thresholds are set by separate SBA regulation. A firm can hold both 8(a) and EDWOSB certification if it meets both sets of requirements independently.

Does EDWOSB certification count toward subcontracting goals differently than WOSB?

In subcontracting plans, primes typically report WOSB subcontractors under the WOSB goal regardless of whether the subcontractor holds EDWOSB designation. The FAR-required goals in subcontracting plans do not separately track EDWOSB versus WOSB. However, some agency-specific subcontracting requirements may distinguish them, so primes and subs should review the specific subcontracting plan terms.