Women Entrepreneurs Can Win Larger Contracts Through SBA Set-Aside Program

  • ---Shares
Reader Resource

Apply now to be an Entrepreneur 360™ company. Let us tell the world your success story. Get Started »

The Small Business Administration removed the cap on government contracts set aside for women-owned and economically disadvantaged women-owned small businesses.

Before this week, federal government contracts were capped at $6.5 million for manufacturing contracts and $4 million for all other contracts under the Women-Owned Small-Business Program. According to a rule change published Tuesday in the government’s official journal, the Federal Register, the thresholds placed on those programs have been lifted, effective immediately.

Related: SBA Budget Whacked $92 Million By Sequestration

The rule change aims to help the federal government meet its mandate of 5 percent of contracts going to women-owned small businesses. In 2011, the most recent year for which the data has been compiled, women-owned small businesses received 3.98 percent of distributed contracts, falling short of the mandate.

To be considered a woman-owned small business and be eligible for the contracts under that designation, a company has to be at least 51 percent owned and controlled by at least one woman and has to be primarily managed by at least one woman. To be considered economically disadvantaged, a business has to meet financial requirements and be considered socially disadvantaged according to rules set out by the SBA.

Related: How to Set Your Business Up to Bid on Federal Government Contracts

Will this change in procurement caps affect your business? If so, leave a note and tell us what kind of contracts you will now have access to that you didn’t before.
 

Edition: June 2017

Get the Magazine

Limited-Time Offer: 1 Year Print + Digital Edition and 2 Gifts only $9.99
Subscribe Now
OK

This website uses cookies to allow us to see how our website and related online services are being used. By continuing to use this website, you consent to our cookie collection. More information about how we collect cookies is found here.