A Small Disadvantaged Business (SDB) is a classification granted by the Small Business Administration (SBA) to businesses that meet specific criteria. Primarily, an SDB is a small business that is socially or economically disadvantaged, facing significant barriers to compete in the marketplace. These businesses may be owned by individuals who belong to certain minority groups, including African Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and Subcontinent Asian Americans.
To become an SDB, a comprehensive application process must be completed. This involves providing detailed information about the business, its ownership structure, and the personal experiences of the owners that demonstrate social or economic disadvantage. The SBA evaluates each application on a case-by-case basis, considering factors such as ethnicity, race, education, and financial standing. Successful certification as an SDB opens doors to various government contracting opportunities and access to specialized resources.