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What is a Socially and Economically Disadvantaged Individual?


Socially disadvantaged men and women are those who are actually subjected to racial or ethnic prejudice or cultural bias mainly because of their identities as subscribers of groups without regard to their specific qualities. The social disadvantage must stem from instances beyond their control.

In the deficiency of evidence to the contrary, the following people have been presumed to be socially disadvantaged:

Black Americans;
Hispanic Americans (persons with origins from Latin America, South America, Portugal and Spain);
Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians);
Asian Pacific Americans (persons with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands [Republic of Palau], Commonwealth of the Northern Mariana Islands, Laos, Cambodia [Kampuchea], Taiwan, Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, Federated States of Micronesia, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru);
Subcontinent Asian Americans (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal);
And members of other groups designated from time to time by the SBA.
In addition, an individual who will not be a member of one of the above-named groups may apply for 8(a) certification. Nevertheless, the applicant ought to establish social disadvantage on the basis of clear and convincing evidence. This is done through the development of a Social Disadvantage Narrative, which sets forth specific incidents of discrimination experienced by the applicant that has led to their diminished ability to develop economically (for example: job discrimination)

Economically disadvantaged individuals can be socially disadvantaged individuals whose power to compete in the free enterprise system continues to be impaired due to diminished capital and credit chances, as compared to other folks in the same or similar line of industry and competitive market area who are not socially disadvantaged. For purposes of program entry, an particular person whose personal net worth (excluding the equity in their personal residence and organization) exceeds $250,000 will not likely be considered economically disadvantaged.

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