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SDB Self-Certification Is Eliminated

The SBA has instituted a sweeping change in its regulations that eliminates "self-certification" for companies that wish to take advantage of being designated a Small, Disadvantaged Business (SDB). Now, companies that want to compete for Federal contracts  that provide for either price evaluation adjustments or proposal evaluation factor preferences must undergo an exhaustive formal certification process.

The formal certification was imposed in response to Congressional pressure, brought about largely by lobbying efforts mounted by large, non-minority firms and trade associations. Recent court rulings that were seen as being adverse to minority-owned firms also factored strongly into the SBA’s decision.

As of August 1998, contractors are required to complete a lengthy, complex set of SBA forms if they seek the  market preferences offered by the SDB Program. Independent "Private Certifiers" under contract to the SBA will review the new applications and assist in determining if the applicant firm is qualified for the program. Companies submitting an SDB certification packet could be charged fees averaging over $545 for the review. The fees are not refundable if a company’s application is rejected.

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