Who qualifies as a women-owned or economically disadvantaged women-owned small business, which NAICS codes are eligible for set-asides, and how to get certified through MySBA Certifications.
Last reviewed on September 28, 2026 by the Government.biz editorial team against 13 CFR Part 127, FAR subpart 19.15, and SBA's WOSB program guidance.
The Women-Owned Small Business (WOSB) Federal Contract Program lets contracting officers set aside contracts — and in some cases award them sole source — to small businesses that are at least 51% owned and controlled by women. The program is authorized by 15 U.S.C. 637(m) and governed by 13 CFR Part 127 and FAR subpart 19.15.
There are two designations:
Every EDWOSB is also a WOSB. The government-wide goal is to award at least 5% of federal prime contract dollars to women-owned small businesses each year (15 U.S.C. 644(g)); set-asides under this program are one of the main tools agencies use to reach it. To see how agencies are tracking against their goals, see our set-aside statistics.
| Requirement | WOSB | EDWOSB |
|---|---|---|
| Size | Small under the size standard for a NAICS code in its SAM profile | Same |
| Ownership | At least 51% directly and unconditionally owned by women who are U.S. citizens | At least 51% owned by economically disadvantaged women who are U.S. citizens |
| Control | Women hold the highest officer position and control long-term decisions and daily operations | Same, by economically disadvantaged women |
| Personal net worth | No limit | Less than $850,000 (excluding the business and primary residence equity) |
| Income | No limit | Adjusted gross income averaged over the prior 3 years of $400,000 or less |
| Total assets | No limit | Fair market value of all assets of $6.5 million or less |
| Set-aside industries | Substantially underrepresented NAICS codes | Underrepresented and substantially underrepresented NAICS codes |
A firm is also ineligible if it or any principal has unresolved delinquent federal debts (unless on an approved repayment plan) or an active exclusion in SAM. Check size first: our NAICS codes guide explains how size standards work.
Under 13 CFR 127.201, the qualifying women must own at least 51% directly — not through another company or most trusts — and without conditions that could divert the ownership benefits to someone else.
Normal commercial pledges of stock as loan collateral and ordinary rights of first refusal do not defeat unconditional ownership, but if a man exercises a right of first refusal after certification, the firm must notify SBA.
13 CFR 127.202 requires that women control both the long-term decision-making and the day-to-day management of the business.
Minority owners may hold veto rights over genuinely extraordinary actions — adding equity holders, dissolution, sale, merger, bankruptcy, and amending governance documents to remove those protections — without defeating control. Veto rights over ordinary business decisions such as hiring, contracts, or budgets will sink an application.
Under 13 CFR 127.203, each woman claiming economic disadvantage must meet three tests:
SBA also attributes to her any assets transferred to immediate family members (or trusts benefiting them) within two years of certification, other than transfers for education, medical care, essential support, or customary gifts. A spouse's finances may be considered where the spouse is involved in, lends to, or guarantees the business.
Maria owns 60% of an IT services firm. Her home is worth $700,000 with a $300,000 mortgage; her business interest is valued at $1.2 million; she has $350,000 in a 401(k), $250,000 in a brokerage account, $80,000 in cash, and a $40,000 car with a $15,000 loan. Her AGI over the past three years was $310,000, $420,000, and $380,000.
A woman-owned 8(a) participant automatically qualifies as an EDWOSB, because 8(a) uses the same economic disadvantage thresholds.
WOSB and EDWOSB set-asides are available only in industries SBA has designated under 13 CFR 127.501. SBA publishes the current list of qualifying NAICS codes, split into two groups:
Before investing in certification, compare the codes you actually bid under with the SBA list. If your core codes are not on it, certification still has value — agencies and large primes count WOSB awards toward their goals, and primes with subcontracting plans seek women-owned subcontractors — but you will not see WOSB set-asides in those codes. The list is revised periodically, so check the version date before relying on it.
Under 13 CFR 127.503 and FAR 19.15, a contracting officer may restrict competition to WOSBs (or EDWOSBs) when the NAICS code is eligible, market research shows a reasonable expectation of offers from two or more eligible firms, and award can be made at a fair and reasonable price. If only one responsible firm is expected, a sole-source award is allowed up to $8.5 million for manufacturing NAICS codes and $5.5 million for all others, including options — thresholds raised from $7 million and $4.5 million by the FAR inflation adjustment effective October 1, 2025.
Good market positioning matters: respond to sources sought notices so contracting officers can see two capable WOSBs, and lead with your certification in your capability statement.
If you are a woman-owned SDVOSB certified under SBA's Veteran Small Business Certification program, you may submit that certification as evidence. Once approved, your status appears in SAM and SBA's small business search.
WOSBs can also joint venture on WOSB set-asides under 13 CFR 127.506, with the WOSB as managing venturer. A WOSB protégé can bid WOSB set-asides with a large mentor through an SBA mentor-protégé joint venture. Either way, the limitation on subcontracting applies, with other certified WOSBs counting as similarly situated.
Both are small businesses at least 51% owned and controlled by women who are U.S. citizens. EDWOSB adds economic disadvantage tests for the qualifying women: personal net worth under $850,000, average adjusted gross income of $400,000 or less over three years, and total assets of $6.5 million or less. EDWOSBs can compete for set-asides in more NAICS codes than WOSBs.
Each woman claiming economic disadvantage must have a personal net worth of less than $850,000. Her ownership interest in the business, her equity in her primary residence, and documented retirement account funds are excluded from the calculation.
Apply for free on SBA's MySBA Certifications portal at certifications.sba.gov, or use one of SBA's approved third-party certifiers, which may charge a fee. You will need an active SAM registration and documents showing ownership, control, and, for EDWOSB, the qualifying owners' personal finances.
Only NAICS codes that SBA has designated as underrepresented or substantially underrepresented for women-owned businesses. WOSB set-asides are limited to substantially underrepresented codes, while EDWOSB set-asides can use either group. SBA publishes the current list on its website.
You can self-represent as women-owned in SAM, and those awards count toward agency goals. But to receive a WOSB or EDWOSB set-aside or sole-source contract, you must be certified by SBA or an approved third-party certifier, or have a complete application pending when competing for a set-aside.
The government-wide goal is to award at least 5% of federal prime contract dollars to women-owned small businesses each year. Agencies negotiate their own goals with SBA and report progress on the annual small business procurement scorecard.
Certification is subject to a program examination every three years. You must recertify with SBA, or report a completed third-party examination, within 90 days before the end of your three-year eligibility period to avoid decertification. SBA's annual attestation requirement is currently in abeyance.