For the purpose of improving and stimulating this Small Business segment, VA established a realistic Department-wide goal for the award of contracts to Small Business concerns owned and controlled by socially and economically disadvantaged individuals.  OSDBU is also responsible for the VA program to encourage greater economic opportunity for minority entrepreneurs.  To implement these requirements, goals are established for award of contracts to Small Disadvantaged Businesses (SDBs).

If a business is; (a) Small for the NAICS Code under which it is to perform, (b) At least 51% owned by one or more individuals who are both socially and economically disadvantaged and; (c) Managed and controlled by one or more such individuals, they may be eligible to self-certify as an SDB under this program.  The Government wide prime and sub-contracting goal for SDBs is 5%.  Full definitions of social and economic disadvantage are outlined in 13 CFR § 124.

Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities.  The social disadvantage must stem from circumstances beyond their control.