Almost every guide online describes EDWOSB as a narrower, harder version of WOSB. That is backwards, and believing it can cost you contracts you were entitled to bid.
What the two actually reach
SBA studies which industries women are underrepresented in, and publishes the result as a list of NAICS codes split into two groups. There are 733 designated industries in total.
- 626 codes are marked WOSB. Women are substantially underrepresented there, and any WOSB Program participant can compete.
- 107 codes are marked EDWOSB. Competition in those is limited to SBA-certified EDWOSBs only.
Every EDWOSB is also a WOSB. So an EDWOSB certification reaches all 733 designated industries. A plain WOSB certification reaches 626 of them and cannot touch the other 107.
Who qualifies as economically disadvantaged
All three of these must be true of the qualifying owner, and they are separate tests that get conflated constantly.
- Personal net worth less than $850,000.
- Adjusted gross income of $400,000 or less, averaged over three years.
- Personal assets of $6.5 million or less.
What to do about it
Check whether your NAICS code sits in the 626 or the 107. If it is in the 107, EDWOSB is the only certification that reaches your industry and there is no decision to make. If it is in the 626 and you meet the economic thresholds, apply for EDWOSB anyway: it costs the same, takes the same time, and covers strictly more ground.
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