A Small Disadvantaged Business (SDB) is a small business that is at least 51% owned and controlled by individuals who are socially and economically disadvantaged. In government contracting, SDBs receive preferential treatment to help them compete against larger, more established businesses. This designation is intended to provide greater opportunities for minority, women, and other historically underrepresented groups in the marketplace.
SDBs are eligible for set-aside contracts, which are specifically designated for businesses that meet certain socioeconomic criteria, including disadvantaged status. These set-asides are part of the government’s efforts to level the playing field and increase diversity in federal procurement. In addition to the set-aside contracts, SDBs also have access to mentoring and business development programs, such as the SBA’s Mentor-Protégé Program, which helps small businesses grow and develop their capacity to compete for larger contracts. The goal is to encourage the success and sustainability of small businesses that contribute to a more equitable and inclusive economy.