Please note that SBA may be required by Congress or by federal laws to disclose Applicant business information (e.g. Name of Applicant business) for those Applicants that self-certify as a priority Applicant.
Socially disadvantaged individuals (13 CFR § 124.103) are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.
Individuals who are members of the following groups are presumed to be socially disadvantaged:
Black Americans;
Hispanic Americans;
Native Americans (including Alaska Natives and Native Hawaiians);
Asian Pacific Americans;
or Subcontinent Asian Americans.
Individuals that are not members of the above groups may establish individual social disadvantage by a preponderance of the evidence and must be able to provide such written evidence upon request by SBA. Refer to 13 CFR § 124.103 for guidance on applicable requirements.
For someone claiming status as LGBTQ or handicapped, the individual would be self-certifying personal discriminatory conduct causing social disadvantage within the meaning of the regulations. If that status is later questioned (e.g., under an audit), the individual would have to write a narrative to demonstrate the individual social disadvantage as set forth in 124.103(c).
All individuals claiming to be socially and economically disadvantaged (whether a member of a presumptively socially disadvantaged group or not) are also certifying to their economic disadvantage. Similarly, if that is later questioned, all individuals (presumptive group members and those claiming individual social disadvantage) would have to establish their economic disadvantage.
Further, an Applicant may not re-organize ownership on or after March 11, 2021, for the purposes of qualification for the priority period. Such re-organization will result in automatic disqualification of the award.
Economically disadvantaged individuals (13 CFR § 124.104) are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.