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A Guide To Women-Owned Business Certification (Wosb)
If you’re a female entrepreneur, you have probably heard about the WOSB certification. But what exactly is it, and how can it be of use to your business?
Let’s jump right in and break down everything you need to know about this certification.
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What Is WOSB Certification?
WOSB is simply an acronym for Women-Owned Small Business. WOSB certification refers to a designation given by the U.S. Small Business Administration (SBA). It represents a business that is both owned and controlled by a woman. However, it is not simply a pat on the back because you are female and an entrepreneur. This certification is your ticket to bid for federal contracts that are reserved for women-owned businesses only.
Think of it as the government’s way of making things even for all those competing in the marketplace. It was understood that WOSBs were not receiving a fair share of the federal contracting funds. As a result, they developed this policy to ensure that at least 5% is allocated to WOSBs.
Types of Women-Owned Business Certifications
Before you plan to get a certification, different ones are available for business. Let's break it down:
WOSB Certification
This is the standard type of certification we discussed earlier. It is for small businesses that are, at least 51% owned and managed by women who are United States citizens.
EDWOSB Certification
EDWOSB stands for Economically Disadvantaged Women-Owned Small Business. It also contains some extra conditions regarding the owner’s net worth, income, and assets. If you qualify for this, then you’ll be able to access additional exclusive federal contracts.
Other Relevant Certifications
There are also other credentials that you might wish to consider depending on the type or location of your business:
Women's Business Enterprise (WBE) certification from the Women's Business Enterprise National Council (WBENC)
State-specific women-owned business certifications
Minority Women's Business Enterprise (MWBE) certification if you also fall into the category of a minority.
Eligibility Requirements for WOSB Certification
Before starting the process, you need to be sure that you’re eligible for this certification. The SBA has some requirements, which include:
Ownership: The business should be managed and owned by one or more women who are citizens of the United States of America.
Control: A woman (or women) must operate the business on a day-to-day basis and make strategic decisions about its future.
Size: Your business has to fall within the size criteria as defined by the SBA for your industry. This is typically calculated based on revenue or the number of people employed in a business.
U.S. Based: Your business needs to be principally based in the United States or within its territories.
For-Profit: Holding this certification is only open to for-profit organizations.
Women in Control: The business must have a female officer in the highest rank. Women should also occupy the key executive positions that are provided in the corporate bylaws.
How Do I Register as a Woman-Owned Small Business?
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Being defined as a WOSB-certified business begins with applying to be a woman-owned small business. Here's how to do it:
Get a DUNS Number: This is a 9-digit number that is unique to your business and can be gotten for free.
Register in SAM: Register in the System for Award Management. Here’s where you’ll state that you’re a woman-owned small business.
Complete the SBA Profile: You will be required to fill out the SBA supplemental pages in your SAM profile. This is where you’ll provide specific details about your business.
Get an Open Ratings Past Performance Evaluation: Although this is not compulsory, it’s an added advantage when placing your bids.
Register in the Dynamic Small Business Search: This lets contracting officers find small businesses for federal contracts.
The easiest way to get WOSB certification is to indicate on your WBE application or recertification. You also have to upload your SAM.gov registration and add supporting evidence, such as your quarterly tax return. If you don’t take this route, you need to complete a different process to get your WOSB certification.
A Step-By-Step Guide on How To Get WOSB Certification
Let’s walk you through the WOSB certification process step by step:
Step 1: Determine If You’re Eligible
Ensure you meet all the requirements mentioned earlier to avoid any mistakes. It's worth taking the time to get this right from the start.
Step 2: Gather Your Documentation
You may need to provide a considerable number of documents as proof of eligibility, so it’s best to gather them before your application. They include:
Business licenses and certificates
Business and individual tax returns
Proof of U.S. citizenship for the woman owner(s)
Resumes of key personnel
Articles of incorporation or operating agreements
Step 3: Register in the System for Award Management (SAM)
This is the official government database for businesses that want to work with the federal government. Registering is free, but it can be a bit time-consuming.
Step 4: Complete the Certification Process
You have two options here:
Self-Certification: It can be done online through the SBA’s portal.
Third-Party Certification: This is by receiving certification from an SBA-recognized third-party certification body.
Step 5: Submit Your Application
Once you've gathered all your documents and completed the necessary forms, it's time to submit your application.
Step 6: Wait for Review
After you submit the form, the SBA will take some time to go through your application. They may contact you for further details in the process.
Step 7: Receive Your Certification
If your application is approved, congratulations! You're now WOSB certified.
How Long Does it Take to Get WOSB Certification?
For this question, there's no one-size-fits-all answer. The process can take anywhere from one to four weeks. This depends on various factors, like the completeness of your application and the current workload of the SBA. Ensure you start the process as soon as possible, fill out all their paperwork correctly, and be patient.
How Do I Self-Certify a Small Business?
When it comes to obtaining WOSB certification, you have two main options. These include self-certification and certification done by independent third parties. The self-certification process allows the candidate to directly submit their application through the SBA website. You just have to visit the SBA certification website, sign up for an account, apply, and submit all relevant documents.
In the case of third-party certification, four organizations are accredited by SBA, which are:
Every institution has its protocol, but in most cases, you will fill out a form and attach supporting documents. You may be required to attend an interview, and your business location may be visited.
Final Thoughts
Getting WOSB certified isn't a walk in the park, but it's certainly worth it. This certification can open big doors for your business. Dive in, get started, and watch your business grow. Who knows? Your next big break might be just a certification away.
At PayStubCreator.net, we’re dedicated to supporting and empowering female entrepreneurs by providing tools that simplify business operations. Whether you’re managing payroll or need to generate professional paystubs, our paystub generator is here to help you focus on what you do best - growing your business.
