Small Disadvantaged Business

A publicly-owned business may be considered an SDB if at least 51 percent of its stock is unconditionally owned by one or more such individuals and if the public company's management and daily business is controlled by one or more such individuals.

The SBA defines socially disadvantaged groups as those who have been, historically, subjected to "racial or ethnic prejudice or cultural bias" within the larger American culture. Identified groups include: African Americans, Asian Pacific Americans, Hispanic Americans, Native Americans and Subcontinent Asian Americans. Members of other groups may qualify if they can satisfactorily demonstrate that they meet established criteria.

Economically disadvantaged individuals are defined as those for whom impaired access to financial opportunities has hampered the ability to compete in the free enterprise system, in contrast to people in similar businesses who are not identified as socially disadvantaged.

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Do you have something to add to this definition? Let us know. Send your comments to techterms@whatis.com

More resources from around the web: - The U.S. Department of Housing and Urban Development describes small business types and programs. - The Office of Small and Disadvantaged Business Utilization has more information about available programs. - The SBA Web site has more information.

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