A search targeting a US small business designation (WOSB, SDB, Veteran)?

searcher profile

December 18, 2020

by a searcher from Iowa State University of Science and Technology in Overland Park, KS, USA

I was talking with an investor today and he mentioned that they typically skip over Women-Owned small businesses (WOSB) and other special designations because they can't support them. Has anyone had success flagging small business designations if they fit one of the categories? Or have you passed on opportunities because the current owner is in one of the designations and you aren't?

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commentor profile
Reply by an investor
from The University of Chicago in Louisville, KY, USA
Melissa, this is absolutely an area where a searcher with a certain socio-economic status (woman-owned, minority, 8a, HUBZone, Service Disabled, Veteran, Native American) can have an advantage over other buyers because they can maintain the status. This can be a complicated subject but if you understand the rules there are many sellers looking to exit without great opportunities. On the other hand, these businesses mostly rely on their small business set-aside contracts so the growth strategy could be constrained by maintaining the size status. I can guarantee (from my experience as a veteran owned small business government contractor for 20+ years) you will have a hard time raising equity for a deal like this.
commentor profile
Reply by an investor
from The University of Chicago in Louisville, KY, USA
A resource I have used before is GSA. Many small businesses have GSA Schedule contracts to do business with the US Govt. You can search them here: https://www.gsaelibrary.gsa.gov and sort by category and then by small business status. Then you can export to excel with full contact information, usually for the President/owner.
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