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Economically Disadvantaged Women‐Owned Small Business [EDWOSB]
Understanding Economically Disadvantaged Women-Owned Small Business [EDWOSB]: Definition and Benefits
Definition & Meaning
An economically disadvantaged women-owned small business (EDWOSB) is a business that is at least 51 percent owned and controlled by one or more women who are U.S. citizens and meet specific economic criteria. A woman is considered economically disadvantaged if her personal net worth is less than $750,000, her average adjusted gross income over the past three years does not exceed $350,000, and the total fair market value of all her assets, including her primary residence and business, is below $6 million. EDWOSBs qualify for the Women-Owned Small Business (WOSB) Program, which allows for certain government contracting opportunities specifically for women-owned businesses.
Table of content
Legal Use & context
The term EDWOSB is used primarily in the context of federal contracting and business development. It applies to small businesses seeking to participate in government contracts specifically set aside for women-owned businesses. This term is relevant in areas of business law, contract law, and economic development. Users can manage the certification process themselves, often using legal templates and forms available through services like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A woman owns a bakery that she started with her savings. She meets all the financial criteria, including a net worth of $500,000 and an average income of $200,000 over the last three years. She qualifies as an EDWOSB and can apply for government contracts aimed at women-owned businesses.
Example 2: A woman operates a consulting firm with a net worth of $600,000 and assets valued at $5 million. She is eligible for EDWOSB certification, allowing her to compete for specific contracts set aside for economically disadvantaged women.
State-by-state differences
Examples of state differences (not exhaustive):
State
Specific Requirements
California
Additional local certification may be required.
Texas
State-specific programs may offer additional benefits.
New York
Local government contracts may have different thresholds.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Women-Owned Small Business (WOSB)
A business at least 51 percent owned by women.
EDWOSB has additional economic criteria.
Small Business
A business that meets the Small Business Administration's size standards.
EDWOSB is specifically for women and includes economic disadvantage criteria.
Common misunderstandings
What to do if this term applies to you
If you believe you qualify as an EDWOSB, start by assessing your financial situation against the criteria outlined above. Gather necessary documentation, including financial statements and tax returns. You can apply for EDWOSB certification through the Small Business Administration or relevant local authorities. Consider using US Legal Forms for templates that can assist in the application process. If your situation is complex, it may be beneficial to consult with a legal professional for tailored advice.
Find the legal form that fits your case
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Income Limit: Average of $350,000 over three years
Asset Limit: Fair market value not exceeding $6 million
Eligibility: Must be a U.S. citizen
Key takeaways
Frequently asked questions
Certification allows access to federal contracts specifically set aside for women-owned businesses, which can increase business opportunities.
You can apply through the Small Business Administration's website or local certifying agencies. Prepare your financial documents to support your application.
If your financial situation changes and you no longer meet the criteria, you may need to update your certification status accordingly.
Yes, if you no longer meet the eligibility criteria, your EDWOSB certification may be revoked.
There may be fees associated with the application process, depending on the certifying agency.