SDB, or Small Disadvantaged Business, Targets refer to specific objectives set by the federal government to award a certain percentage of federal contracts to small business enterprises that are disadvantaged. This program aims to encourage economic growth and facilitate the participation of such businesses in the public market. The ‘disadvantaged’ status typically applies to businesses that are at least 51% owned by individuals who are socially or economically disadvantaged – this often includes minorities, women, veterans, and individuals with disabilities.
The percentage targets are established annually by the government, and all federal agencies are required to do their best to meet these goals. The ultimate aim of SDB targets is to promote diversity, equal opportunity, and fair competition within the federal marketplace. Additionally, they stimulate the economy by supporting and empowering smaller companies, thereby aiding in job creation and the development of local communities. These targets play a crucial role in ensuring a more inclusive and equitable economy.
