National Women's Day: The Complete Guide to Getting Your Woman-Owned Business Certification

In the USA, the number of women-owned businesses increased by 21% between 2014 and 2019, which is more than twice as fast as the growth rate for all new businesses.

The Small Business Administration (SBA) and authorized third-party certifiers like the Women's Business Enterprise National Council (WBENC) and National Women Business Owners Corporation both accept applications from small firms owned and operated by women (NWBOC).

The benefits of becoming certified as a woman-owned business enterprise (WBE) for small enterprises are numerous and compelling. Most notably, the SBA's Federal Contracting Program mandates that 5% of federal contracts in particular industries where women-owned businesses are underrepresented must be awarded to companies having a woman-owned business certification.

Women-owned Businesses can apply for three different certifications:

1.  Women-Owned Small Business (WOSB)
2.  Economically Disadvantaged Woman-Owned Small Business (EDWOSB)
3.  Women’s Business Enterprise (WBE)

The SBA offers WOSB and EDWOSB certifications, which allow companies to take part in government initiatives for women-owned businesses. Contrarily, WBE certification is provided by authorized third-party certifiers and is often recognized by private businesses and local governments. If you receive a WBE certification from an authorized third-party certifier, you'll also qualify for WOSB and EDWOSB certification through the SBA.

Everything you need to know about obtaining certification for a woman-owned business will be covered in this post, including:

• When to apply for woman-owned business certification
• SBA initiatives for women-owned businesses
• Obtaining certification for a woman-owned business through third-party certifiers
• Regulations for women-owned business certification
• How to register as a woman-owned business

Let’s get started.

When to Certify as a Woman-Owned Business

While there are several benefits to becoming certified as a woman-owned business, certification is not always required or advantageous. If you're thinking of requesting certification for women-owned businesses, decide whether it's worthwhile by asking yourself these two questions:

• Are corporations, retailers, or governmental organizations your primary customers for your goods and services? In order to find sourcing opportunities with woman-owned business enterprises, corporations, and government agencies collaborate with groups like the SBA and WBENC. Obtaining your WBE certification will help you get a foot in the door if you currently work with or are looking to work with these types of firms.
  
  
• Can you handle large contracts? Contracts from corporate, retail, and the government may be larger than what most small businesses are accustomed to.  If your company is incapable of handling larger contracts, it may not be worthwhile to pursue a WBE certification. 

SBA Programs for Women-Owned Businesses

The Woman-Owned Small Business (WOSB) and Economically Disadvantaged Woman-Owned Small Business (EDWOSB) certifications are the two certifications offered by the Small Business Administration (SBA). offers to WBEs. 

Businesses can self-certify at no cost.

The WOSB Federal Contracting Program eligibility for both programs must be renewed annually. Also, every three years, businesses must go through a program examination run by the SBA or a third-party certifier.

Let's examine these two programs and their certification requirements in more detail:

1. Certification for Woman-Owned Small Businesses (WOSB)

Your business will be eligible to compete for federal contracts designated for the WOSB Federal Contracting Program if it has WOSB certification, which stipulates that 5% of federal contracts must go to companies with WOSB or EDWOSB certification.

Your business must satisfy the following requirements to be considered a WOSB:

• You must have at least 51% of your company ownership unconditionally and directly by women who are US citizens.
• In addition to holding the highest officer position available, the woman or women must oversee everyday operations and make long-term company decisions.
• There is no minimum time requirement for the business to be considered operational; however, the woman or women owners must work at the business full-time during regular business hours.

2. Economically Disadvantaged Woman-Owned Small Business (EDWOSB) certification

To qualify for EDWOSB certification, your business must meet the following economic requirements in addition to the WOSB criteria listed above:

• The business owner’s personal net worth must be under $750,000.
• The business owner’s adjusted gross income average over three years must be less than or equal to $350,000.
• The fair market value of all assets must be less than $6M (excluding equity in the business and primary personal residence, income reinvested or used to pay business taxes, and funds invested in official retirement accounts if they cannot be accessed till retirement).

The SBA advises seeking an EDWOSB certification rather than WOSB if you meet the economic requirements. Because some of the federal contracts are further restricted to economically disadvantaged women-owned businesses, EDWOSB-certified companies are eligible to bid for more contracts than WOSB-certified businesses.

Obtaining WBE Certification Through Third-Party Certifiers

Four authorized third parties are recognized by the SBA as valid WBE certifiers:

• Women’s Business Enterprise National Council (WBENC)
• National Women Business Owners Corporation (NWBOC)
• U.S. Women’s Chamber of Commerce (USWCC)
• El Paso Hispanic Chamber of Commerce

State and local authorities as well as other private firms accept WBE certifications from these organizations. Your company will still need to self-certify as a WOSB or EDWOSB in order to be eligible for the SBA's WOSB Federal Contracting Program. If you've already acquired a WBE certification from one of these authorized third-party certifiers, your business will also meet the criteria for SBA certification and the self-certification process should be quite simple.

While third parties will charge an application fee, unlike the SBA, they also provide other advantages including access to knowledgeable advisors and other support.

Let's examine these four third-party certifiers in more detail.

1. Women’s Business Enterprise National Council (WBENC)

The largest certifier of women-owned enterprises in the United States is the Women's Business Enterprise National Council (WBENC). To issue certification, WBENC collaborates with 14 regional partner organizations around the nation.

In addition to being recognized by the SBA, receiving WBENC accreditation has several advantages for woman-owned businesses, such as:

• Access to executives responsible for supplier diversity and procurement at hundreds of large US companies and governmental organizations who recognize WBENC certifications.
• Being listed in WBENCLink2.0, a website that houses a database of WBENC-certified companies
• Opportunities, both formal and informal, to conduct business with corporate, governmental, and other WBENC-certified businesses.
• Access to business tools and services such as networking events, procurement possibilities, mentoring, executive education, capacity development programs, and more.
• Eligibility for accolades and recognition on a regional and national level
• Usage of the Women Owned Logo and Women Business Enterprise Seal as a marketing tool
• Opportunities to advertise your company inside the WBENC network through speaking engagements, sponsorship of, and involvement in local, national, and regional events.
• Access to a network of like-minded professionals and other female business owners, as well as chances to advertise your company within the WBENC network through sponsorship of events, speaking engagements, and other means.

To receive certification, WBENC requires businesses to meet the following woman-owned business requirements:

• Majority (at least 51%) ownership by one or more women
• Demonstrated proof of female management and control of business
• Unrestricted female control of the business in legal documents and day-to-day operations
• A woman holding the highest defined title in the company’s legal documents
• Documented evidence of female contribution of capital and/or industry expertise
• Status of U.S. Citizenship or Lawful Permanent Resident for woman owner(s) constituting majority ownership

See the complete list of WBENC documentation requirements.

Both new applications and requests for recertification are subject to a processing fee by WBENC. Depending on your annual gross income as reported on your federal taxes, the cost might range from $350 to $1,250.

2. National Women Business Owners Corporation (NWBOC)

The National Women Business Owners Corporation was the country's first organization to certify woman-owned companies. For members who successfully complete NWBOC's supplier development program, the organization also offers WBE certification utilizing the same standards as the WOSB program, as well as a "Certified Plus" program. "Certified Plus" provides the following extra advantages:

• More visibility and credentials for potential corporate buyers
• Taking the business owner through the buyer-supplier process and addressing quality control, customer service, scalability, and defining a value proposition

NWBOC charges a one-time application fee of $400, with annual recertification fees between $200 and $400 depending on the size of your business.

3. U.S. Women's Chamber of Commerce (USWCC)

The U.S. Women's Chamber of Commerce is also a third-party certifier for WOSB and EDWOSB that is approved by the SBA. They provide a program called Certification Assist in addition to WBE certification, which offers support for businesses prior to their formal application for WBE certification. This assistance includes:

• Help with preparing applications and organizing documents
• Identifying and resolving any preparation and eligibility problems
• Answering questions before applying for certification

For corporations and local governments, the USWCC also provides certification as an International Women's Business Enterprise (IWBE) and a National Women's Business Enterprise (NWBE). You can obtain NWBE or IWBE at no additional cost if you achieve WOSB or EDWOSB certification.

Members of the USWCC may apply for membership for $275; non-members must apply for membership for $350.

4. El Paso Hispanic Chamber of Commerce

The El Paso Hispanic Chamber of Commerce offers assistance and WOSB certification to businesses in the southwest Texas border region through the Women's Business Border Center.

Woman-Owned Business Requirements

The criteria for becoming certified as a woman-owned business vary depending on the organization and the particular certification, but in most situations, your company must have more than 50% female ownership. Additionally, the woman or women must oversee everyday operations and occupy the highest officer positions available.

To become certified as a woman-owned business, you must adhere to the following requirements:

• The majority owners must be U.S. citizens
• The company must be a for-profit organization
• The company must have a place of business in the U.S. and operate primarily within the U.S. or make a significant contribution to the U.S. economy through payment of taxes or use of American products, materials, or labor.
• The business must meet industry-specific size standards based on revenue and number of employees. Start by looking up the North American Industry Classification code for your business or simply do a keyword search with the SBA’s online tool. Then, enter the NAICS code and your 3-year annual average revenue. Look for a green check mark that shows you meet the size requirements.

The following business documents are required:

• Company name and fictitious business name (“Doing Business As” DBA) certificate
• Owners’ names, addresses, and company website
• The company’s legal structure
• Incorporation date
• Articles of organization/incorporation, partnership or joint venture agreements, voting agreements, and any amendments to these documents
• A list of each proprietor, partner, shareholder, or member within the 12 months preceding the date of the application
• Statement of information filed with the Secretary of State listing officers, directors, managers, members, or general partners
• DUNS number (from Dun & Bradstreet)
• Any affiliate relationships
• Contact information for regular clients
• Employee information, including resumes of all owners, directors, partners, officers, and key personnel
• Authority to conduct business in the state and/or certificate of good standing issued by the Secretary of State
• Bylaws and amendments
• Minutes of corporate shareholders' and directors’ meetings
• Shareholder agreements
• Professional, industry, and/or business licenses
• Copy of lease or deed for business location
• Current bank statements for all deposit accounts and loan statements
• Financial statements for three years, including balance sheet, profit & loss statement
• EIN (Federal Tax ID)
• Business and/or personal loans
• Issued stock certificates and stock ledger
• Financial institution signature cards
• Documentation of how the company was capitalized

You’ll also need to provide the following personal documents:

• Birth certificates, naturalization papers, or unexpired passports for each woman business owner
• Driver’s licenses of all owners
• Three most recent personal tax returns including W-2s and all schedules for each woman business owner and her spouse (for EDWOSB)
• IRS Form 4506-T, Request for Tax Transcript for each woman business owner and her spouse (for EDWOSB). If your business has an 8(a) certification for ownership by economically disadvantaged individuals, and you are also applying for an EDWOSB certification, you may upload your 8(a) certificate and annual review letter instead of the above financial statements.

How to Register as a Woman-Owned Business?

By submitting a request directly to the SBA, you can self-certify as a WOSB or EDWOSB without paying a fee. Although authorized third-party certifiers may have a different process, you expect the following steps:

• Find out if you qualify. Do you meet the requirements outlined by the SBA or your preferred third-party certifier?
• Gather documentation. When applying, be ready with all the necessary papers.
• Complete your online application and pay any required application fees.
• To qualify for EDWOSB certification, your business must meet the following economic requirements in addition to the WOSB criteria listed above:
• The business owner’s personal net worth must be under $750,000
• The business owner’s adjusted gross income average over three years must be less than or equal to $350,000
• The fair market value of all assets must be less than $6M (excluding equity in the business and primary personal residence, income reinvested or used to pay business taxes, and funds invested in official retirement accounts if they cannot be accessed till retirement)

Wrapping Up

Women-owned businesses can apply for three types of certifications:

1. Women-Owned Small Business (WOSB)
2. Economically Disadvantaged Women-Owned Small Business (EDWOSB)
3. Women’s Business Enterprise (WBE)

Obtaining a woman-owned business enterprise (WBE) certification, which is accessible through the SBA and authorized third-party certifiers, offers small businesses a number of compelling advantages, including entry to federal contracts via the Small Business Administration's WOSB Federal Contracting Program.

Even with WOSB, EDWOSB, or WBE certification, if you're having difficulties getting the cash you need from conventional lenders, commercial lending companies like Lionsford can help you get the working capital you need to maintain operations, pay unexpected expenses, and expand your business.

Compared to financing from traditional lending institutions, alternative funding options like merchant cash advances have a number of benefits, including:

• No collateral is required.
• Streamlined online applications with less paperwork and greater approval odds.
• Faster processing and approval; with funding in as little as one business day in most cases.
• More flexibility and wiggle room to negotiate terms.

Alternative lenders typically focus on innovative funding solutions like merchant cash advances. Merchant cash advances are ideal for businesses that need capital quickly, don't meet the strict requirements of the SBA and other traditional lenders, can’t provide collateral, or would prefer not to seek funding from friends or family members. With funding from as little as $10,000 up to $500,000, business owners can access alternative funding that suits their unique needs.