Today we’re diving into everything you need to know about obtaining a woman-owned business certification! Two different certifications are part of the federal guidelines for woman-owned small businesses: Woman-Owned Small Business (WOSB) and Economically Disadvantaged Woman-Owned Small Business (EDWOSB).
There are also non-federal (but federally approved) third-party programs through the Women’s Business Enterprise National Council (WBENC), U.S. Women’s Chamber of Commerce (USWCC), and The National Women Business Owners Corporation (NWBOC) to increase support and encourage growth for women-owned businesses. These programs offer certifications for the WOSB/EDWOSB title and unique titles separate from the federal contract bid system.
Here, we cover the benefits of listing your business as a woman-owned business from a federal standpoint (as with WOSB/EDWOSB) and a non-federal certification of Women’s Business Enterprise (WBE) title through WBENC and NWBOC, as well as the unique certifications available through USWCC. We also cover the various paperwork and documents required to obtain these certifications. Without further ado, let’s jump into the topic at hand.
Federal Programs for WOSB and EDWOSB
Women-owned businesses receive certification primarily through the Small Business Association (SBA). This government-run program has several requirements and was started in 2000. The program’s goal was to set aside 5% of government contracts for women-owned small businesses, and the program continues over 20 years later. This certification allows small businesses to bid for government contracts to increase diversity and boost these businesses.
Remember that businesses certified as Woman-Owned Small Businesses (WOSB) or Economically Disadvantaged Woman-Owned Small Businesses (EDWOSB) can benefit from the programs even without bidding for government contracts. These programs allow businesses classification under these titles as part of the North American Industry Classification System (NAICS), which provides benefits and recognition to said businesses even outside of federal contracts.
The program works to limit competition in certain industries and does not provide certification for every business type, meaning it may not work for all woman-owned small businesses. Suppose you do not qualify through the government contracts program. In that case, you can go through an approved third-party certification system (which we will cover shortly) to apply for similar woman-owned business certifications.
We know this can seem confusing, so in summary:
- WOSB and EDWOSB titles originated for women-owned and operated businesses to bid for government contracts.
- This program has grown to include certifications for businesses through the NAICS, which can give companies access to programs, grants, and more depending on official classification.
- Not all businesses qualify as WOSB/EDWOSB through the contract bid system due to competition limitations and industry restrictions.
- WOSB/EDWOSB titles are tied directly to this government contract program and do not cover all small businesses owned by women across all industries.
- The SBA encourages businesses to undergo approved third-party certification programs for WOSB/EDWOSB certifications and similar women-owned business qualifications not tied to federal contracting programs.
- Federally approved third-party certification centers include the Women’s Business Enterprise National Council (WBENC), the U.S. Women’s Chamber of Commerce (USWCC), the National Women Business Owners Corporation (NWBOC), and the El Paso Hispanic Chamber of Commerce (EPHCC).
WOSB/EDWOSB Requirements
Several baseline requirements for the WOSB/EDWOSB include that your business be at least 51% women-owned and located in the United States or one of its territories. There are several other qualifications to this certification, however. Thankfully, the SBA offers a screening form to help you decide if your business fits the WOSB Program. Remember that you will still need several forms of paperwork to prove your business qualifies for these programs.
If you want to apply for the government contract WOSB/EDWOSB program, the SBA provides a comprehensive checklist to help you get started.
Third-Party Programs through WBENC, NWBOC, and USWCC
If you’re interested in qualifying as a woman-owned business outside of the WOSB/EDWOSB program, you’re looking to work through one of three different agencies:
- Women’s Business Enterprise National Council (WBENC)
- U.S. Women’s Chamber of Commerce (USWCC)
- The National Women Business Owners Corporation (NWBOC)
WBENC and the NWBOC offer Women’s Business Enterprise (WBE) certifications through their websites. These certifications do include an application fee. However, they allow businesses to identify as women-owned and certify that the company is “at least 51 percent owned, controlled, operated, and managed by a woman or women,” according to the WBENC website. The WBE certification boasts access to national recognition, awards, formal and informal business opportunities, and networking events.
The U.S. Women’s Chamber of Commerce (USWCC) is distinct from these two previous entities. This organization does not offer the WBE certification. Instead, USWCC offers a National Women’s Business Enterprise and an International Women’s Business Enterprise certification. These are not restricted to small business owners, unlike the federal WSBO/EDWSBO titles.
One downside to these third-party certifications is that they require an initial application fee that varies depending on the website. In many cases, these certifications must be renewed each year. However, many business investors look for these certifications, which can benefit your business overall on an advertising and potential sales front.
WBENC, NWBOC, and USWCC Requirements
The WBENC offers the WBE for businesses at least 51% owned, controlled, operated, and managed by a woman or women. You can review their requirements for the WBE here. However, an intensive vetting process, business documentation, and site visits are necessary. It is also worth noting that the overall application fee depends on business revenue, with a sliding scale starting at $350 for revenue below $1,000,000 and a staggering $1,250 application fee for businesses making at or above $50,000,000.
The NWBOC also offers the WBE certification and certifications for Veteran-Owned Business Enterprises (VBE) and Minority-Owned Business Enterprises (MBE). The NWBOC requires a higher fee than some of the other Women-Owned Business certifications, with a $400 fee attached to the application. Their application requirements can be found here.
USWCC lists its requirements here for the NWBE and here for the IWBE and includes a preliminary document checklist for each separate application. Note that these applications must be completed in one sitting, and there is a non-refundable fee of $275 for members and $350 for non-members. This certification must be renewed annually.
Source(s):
https://www.uschamber.com/co/start/strategy/get-certified-woman-owned-business
https://startupsavant.com/how-do-you-become-a-certified-woman-owned-business
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