If you are a woman who owns a small business and have been thinking about certification for the federal Women-Owned Small Business (WOSB) set-aside program, now is the time to take action.

Proposed changes by the federal Small Business Administration (SBA) could make it more costly for women-owned businesses to go through the certification process. At this writing, businesses interested in certification can either apply directly to the SBA attesting to their eligibility for the program or work with an SBA-approved entity to prepare and process the required paperwork. There are no fees for certification if the business submits application materials directly to SBA, but businesses choosing a third-party entity pay varying fees depending on the entity chosen.

SBA is currently considering eliminating the option to apply directly to the agency for certification, requiring all interested women-owned small businesses to pay an approved entity to process an application. SBA is required to eliminate the self-certification process, but instead of processing applications internally or developing a fee-based applicaton system, they are proposing to delegate this responsibility and process to external entities.

SBA has issued draft rules that require women-owned small businesses to work with an external entity to process their application. The fees will be set by the third-party certifier, and the certifiers will be able to limit the services they provide to select businesses. Unfortunately this proposed process will force women-owned businesses to pay different fees for the same certification, and allow certifiers to select the businesses that will ultimately have access to the program.

Unfortunately, with this approach the WOSB is being singled-out by SBA, who is not establishing the same criteria for other set-aside programs. Those businesses applying for 8(a) and HUBZone certification can still apply directly to SBA with no requirement to work with a third-party certifier, and no affiliated fee.

SBA is in the process of finalizing the rules to make these changes. Until they are final, women-owned small businesses may still self-certify through SBA but it is unclear when this will end. Individuals interested in commenting on the rules and how the WOSB certification process should move forward, are encouraged to do so. If you have been considering certification, you might want to consider applying now instead of waiting for the changes. Please contact the PTAC office if you have questions regarding the self-certification process.