Small Disadvantaged Businesses Law and Legal Definition

A Small Disadvantaged Business (SDB) refers to a small business that is at least fifty one percent owned by one or more individuals who are both socially and economically disadvantaged. A company having SDB status is eligible for bidding and contracting benefit programs involved with federal procurement.

Socially disadvantaged groups are those who have been, historically, subjected to racial or ethnic prejudice or cultural bias within the larger American culture. Economically disadvantaged individuals are those for whom impaired access to financial opportunities has hampered the ability to compete in the free enterprise system.