The main difference between an Economically Disadvantaged Woman-Owned Small Business (EDWOSB) and a Woman-Owned Small Business (WOSB) is the additional economic disadvantage criteria required for EDWOSB status. For federal contracts, both certifications offer similar set-aside and sole-source opportunities, but EDWOSB status has more specific requirements.
To be certified as an EDWOSB, the woman owner must have a personal net worth less than $850,000, an adjusted gross income of $400,000 or less averaged over the previous three years, and $6.5 million or less in personal assets. WOSB status does not have these economic disadvantage requirements. Both certifications require the business to be at least 51 percent owned and controlled by one or more women. A concern applies to SBA for WOSB or EDWOSB certification, and there is no cost to apply.
For federal contracting, an EDWOSB or WOSB sole-source award requires an SBA-certified concern and an anticipated price including options not exceeding $8.5 million for manufacturing NAICS codes or $5.5 million for any other NAICS code, as stated in FAR 19.1506(c) and (d). Since the thresholds for sole-source awards are the same, neither certification offers a direct advantage in terms of higher dollar value sole-source contracts. If your firm meets the economic disadvantage criteria, pursuing EDWOSB status means you will be eligible for both EDWOSB and WOSB set-asides.