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Small Disadvantaged Business (SDB)

An SBA designation for a small business at least 51% owned and controlled by socially and economically disadvantaged individuals.

A U.S. Small Business Administration (SBA) designation for a small business that is at least 51% owned and controlled by one or more socially and economically disadvantaged individuals. SDB status is used in U.S. federal procurement to support supplier diversity and increase contracting opportunities for eligible businesses through procurement goals, subcontracting plans, and certain contracting programs. While many SDBs are minority-owned businesses, eligibility is based on meeting specific SBA criteria for business size, ownership, control, and disadvantage, rather than minority ownership alone.

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Related Glossary Terms

The official compilation of permanent U.S. federal laws, providing the statutory basis for many contracting requirements.
A global classification system used to categorize products and services for procurement and spend analysis.
A unique 12-character identifier assigned via SAM.gov to organizations doing business with the federal government, replacing the DUNS number.
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