SBA Loan

1. What is the difference between 8(a) certification and SDB certification?

The 8(a) program is a business development program that offers a broad scope of assistance to socially and economically disadvantaged firms. SDB certification strictly pertains to benefits in Federal procurement. 8(a) firms automatically qualify for SDB certification.

2. What are SDB program benefits?

1. The program offers several important incentives: price evaluation adjustment: qualified SDBs receive a price evaluation adjustment of up to 10 percent on procurements where mandated by regulation. The price evaluation adjustment for SDBs bidding as primes became effective October 1, 1998. Regulations mandate this approach in competitive acquisitions over the simplified acquisition threshold (usually $100,000) where the SIC Code for the prime contract is authorized by U.S. Department of Commerce benchmarks. The price evaluation adjustment does not apply to 8(a) acquisitions and small business set-asides.
2. evaluation factor: qualified prime contractors can receive a credit when using SDBs as subcontractors. This evaluation factor for SDB participation became effective January 1, 1999. The incentive applies only to competitive negotiated acquisitions over $500,000, or $1,000,000 in construction. The evaluation factor does not apply to small business set asides, 8(a) acquisitions, or contracts performed entirely outside the United States. The evaluation factor for SDB participation allows credit for subcontractors only in the SIC codes authorized by the US Department of Commerce benchmarks and requires that all SDBs be certified by the SBA. Once certified, firms remain on the SBA’s list of SDB-certified firms for a period of three years.

3. How do I apply for SDB certification?

You must fill out an application and send it to:

Office of Small Disadvantaged Business Certification and Eligibility
409 Third Street, S.W. – 8th Floor
Washington, D.C. 20416

There are several different applications for various business legal structures. The SBA notifies applicants within 15 days, if the application is complete. SBA renders its decision within 60 days.

Private Certifiers are no longer available. All applications are being processed by the Office of Small Disadvantaged Business Certification and Eligibility in Washington DC.

4. Checking on the status of your SDB Application?

If you are checking on the status of your SDB application, please send an e-mail to SDB@sba.gov (SDB answer desk). Please allow at least 15 days from the date the application is sent, for the application to be received and assigned. The SDB answer desk will respond identifying which Business Opportunity Specialist (BOS) is working on your case and you may then contact the Business Opportunity Specialist (BOS) directly.