A Joint Venture can increase an ED/WOSBs capabilities and sales volume.
Unlike other SBA Certifications the ED/WOSB joint venture does not have to be pre-approved by SBA. The joint venture however does get submitted to the WOSB Program Repository. The EDWOSB or WOSB is required to receive at least 51% of the profits. Additionally the ED/WOSB is required to be the managing member of the JV venture.
The Joint Venture can subcontract part of the contract provided that the EDWOSB or WOSB performs the same amount of work as partner firm. The total amount of work varies by industry type.
| Service Contracts - (non-construction), the WOSB/EDWOSB must perform at least 50% of the cost of the contract for personnel with its own employees. |
| Supply Contracts - (if you are the manufacturer), the WOSB/EDWOSB must perform at least 50% of the cost of manufacturing the supplies or products (not including the cost of materials). |
| General Construction Contracts - the WOSB/EDWOSB must perform at least 15% of the cost of the contract with your own employees (not including cost of materials). |
| Specialty Construction contracts - the WOSB/EDWOSB must perform at least 25% of the cost of the contract with your own employees (not including cost of materials). |
WOSB and EDWOSB firms that are engaging in Joint Venture Activity are seeing a boost in their federal sales. See Table for Results for 2019:
| Type | Sales | Number of Firms | Average Sales |
|---|---|---|---|
| WOSB | 30,605,371,130 | 65,793 | 465,177 |
| EDWOSB | 9,160,053,157 | 24,271 | 377,407 |
| JV WOSB | 1,110,949,952 | 1,582 | 702,244 |
| JV EDWOSB | 902,381,663 | 886 | 1,018,489 |
