How to Write a Statement of Disadvantage

The U.S. government considers an individual to be socially disadvantaged if he has faced any kind of prejudice in American society because of certain distinguishing factors, such as ethnic origin or race. The government also includes women, disabled individuals and those who are socially isolated from mainstream society in the socially disadvantaged category. Further, those who are socially disadvantaged may also be at an economic disadvantage. This means that they find it difficult to compete in the business world because they have difficulty in accessing capital or credit compared to others in the same line of business that they compete with. To be eligible for government financing, the government requires those who say they are at an economic disadvantage to state this using a “statement of disadvantage.”

Writing Statement of Disadvantage

Attest that as a result of your low income, net worth and low level of personal assets you have not been able to access capital and compete with others in the same line of business who are not at an economic disadvantage.

Document your statement with evidence in the form of your two most recent tax returns and other information about your personal net worth and assets.

Provide information to show that you have an adequate financial interest in the concern for which you are seeking government financing.

Certify that you are providing legitimate information.


  • Make sure to provide full and complete information in order to avoid any bureaucratic follow up that will delay your access to government financing.