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59.049 SMALL DISADVANTAGED BUSINESSES

(OSDBC&E)

FEDERAL AGENCY
SMALL BUSINESS ADMINISTRATION

AUTHORIZATION
Small Business Act of 1953, as amended, Section 7(b)(2), Public Law 85-536, 15 U.S.C. 636(b); Public Law 95-507.

OBJECTIVES
To ensure compliance with the constitutional standards established by the Supreme Court in Adarand Contractors, Inc vs. Pena, relative to Federal action programs that use racial or ethnic criteria as a basis for decision making.

TYPES OF ASSISTANCE
Direct Loans.

USES AND USE RESTRICTIONS
The Small Disadvantaged Business (SDB) program is a procurement tool designed to assist the government in finding firms capable of providing needed services, while at the same time, helping to address the traditional exclusion firms owned by disadvantaged individuals from contracting opportunities. Participation in the SDB program and the benefits are restricted to those firms who have satisfied the eligibility requirements and have been certified by the Small Business Administration as an SDB.

Applicant Eligibility
Eligible applicant must be: A small business concern as defined in SBA rules and regulations; firms must be at least 51 percent unconditionally owned and controlled by one or more U.S. citizens who are socially and economically disadvantaged as defined by 13 CFR 124.105, 124.109, 124.110, and 124.111.

Beneficiary Eligibility
Socially and economically disadvantaged individuals and small businesses owned and operated by such individuals; economically disadvantaged Indian tribes including Alaskan Native Corporations and economically disadvantaged Native Hawaiian organizations.

Credentials/Documentation
Documentation to establish that all program eligibility criteria are met.

Preapplication Coordination
This program is excluded from coverage under E.O. 12372.

Application Procedure
Electronic application through SBA's webpage at www.sba.gov.

Award Procedure
Applicant is notified of a decision by letter from the Office of Small Disadvantaged Business Certification and Eligibility.

Deadlines
Applications accepted on an ongoing basis.

Range of Approval/Disapproval Time
Approximately 75 days. The majority are completed within 45 days.

Appeals
Requests for reconsideration of a declined application may be made within 45 days from the date of service of the decline letter.

Renewals
SDB Certification lasts, generally, for a three (3) year period. Firms may reapply after their initial certification has expired.

Formula and Matching Requirements
Not applicable.

Length and Time Phasing of Assistance
Three years renewable.

Reports
Not applicable.

Audits
Not applicable.

Records
Completed applications must be maintained.

Account Identification
73-0100-0-1-376.

Obligations
Administrative Costs: FY 07 $1,235,000; FY 08 $1,294,000; FY 09 $1,459,000.

Range and Average of Financial Assistance
Not applicable.

PROGRAM ACCOMPLISHMENTS
During fiscal year 2004, nearly 1000 new certifications were issued.

REGULATIONS, GUIDELINES, AND LITERATURE
13 CFR Part 124 8(a) Business Development; 124 Subpart B, Eligibility Certification and Protests Relating to Small Disadvantaged Business Programs.

Regional or Local Office
Not applicable.

Headquarters Office
Office of Small Disadvantaged Business Certification and Eligibility, Small Business Administration, 409 3rd Street, S.W., Washington, DC 20416. E-Mail address: www.sba.gov/sdb.

Web Site Address
http://www.sba.gov

RELATED PROGRAMS
None.

EXAMPLES OF FUNDED PROJECTS
Not applicable.

CRITERIA FOR SELECTING PROPOSALS
Not applicable.


General Services Administration
Office of Chief Acquisition Officer
Regulatory and Federal Assistance Division (VIR)