What is EDWOSB? A Comprehensive Guide to Its Legal Definition

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 considered economically disadvantaged. Economic disadvantage is determined by the Small Business Administration (SBA) and may be waived for industries where women-owned businesses are significantly underrepresented. The ownership must be direct, as defined by federal regulations.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A woman-owned construction company qualifies as an EDWOSB because it is 100 percent owned by a woman who meets the SBA's economic disadvantage criteria.

Example 2: A woman who owns a consulting firm with a partner may still qualify as an EDWOSB if she holds at least 51 percent ownership and meets the economic disadvantage requirements (hypothetical example).

Comparison with related terms

Term Definition Key Differences
WOSB Women-Owned Small Business WOSBs do not require proof of economic disadvantage.
SBA Small Business Administration SBA is the federal agency that oversees EDWOSB and WOSB certifications.

What to do if this term applies to you

If you believe your business qualifies as an EDWOSB, consider applying for certification through the SBA. This certification can enhance your opportunities for federal contracts. You may also explore US Legal Forms for legal templates that can assist you in the application process. If your situation is complex, consulting a legal professional is advisable.

Quick facts

  • Ownership Requirement: At least 51 percent by women.
  • Economic Disadvantage: Must meet SBA criteria.
  • Federal Contracting: Eligible for certain contracts.
  • Certification: Can be obtained through the SBA.

Key takeaways

Frequently asked questions

EDWOSB requires proof of economic disadvantage, while WOSB does not.