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What Is an EDWOSB?

An EDWOSB is a women-owned small business whose woman owner also meets SBA's financial limits. It can compete for both EDWOSB and WOSB set-asides.

WOSB and EDWOSB: requirements, certification and set-asidesAll glossary terms

EDWOSB (economically disadvantaged women-owned small business) in plain English

EDWOSB is a subset of WOSB. The business must meet every WOSB rule, and each woman claiming economic disadvantage must also pass three financial tests in 13 CFR 127.203: personal net worth under $850,000, adjusted gross income averaging $400,000 or less over three years, and total assets of $6.5 million or less.

The tests count different things. Net worth leaves out her ownership of the business, her home equity and retirement accounts. Total assets leave out only retirement accounts, so her home and the business both count toward the $6.5 million. A married owner submits her spouse's finances separately.

An EDWOSB needs SBA certification, which is free, and it can bid on WOSB set-asides as well. Set-asides open only to EDWOSBs are allowed in 107 more NAICS codes than the 626 where WOSB set-asides are allowed. Like a WOSB, an EDWOSB goes through a program examination every three years.

Related terms

  • WOSB (women-owned small business): A WOSB is a small business at least 51% owned and controlled by women who are U.S. citizens, with women managing daily operations.
  • Set-aside: A set-aside is a contract reserved for small businesses, or for one type of small business such as HUBZone or women-owned firms. Others can't bid.
  • 8(a) program: The 8(a) program is SBA's nine-year business development program for small businesses owned by socially and economically disadvantaged U.S. citizens.
  • Small business size standard: A size standard is SBA's cutoff for counting as a small business in an industry. SBA sets one per NAICS code, in average annual receipts or employees.

Put it to work

Looking for another term? Browse the full glossary or the government contracting glossary guide.

Cyrus Hakimi writes and edits these definitions, using AI tools to help research and draft them, from the FAR, SBA rules and SAM.gov documentation. They're general information, not legal advice. Rules and thresholds change, so confirm the numbers on the official source before you act.