The SBA administers two particular
business assistance programs for small disadvantaged businesses
(SDBs). These programs are the 8(a) Business Development Program
and the Small Disadvantaged
Business Certification Program. While the 8(a) Program offers
a broad scope of assistance to socially and economically disadvantaged
firms, SDB certification strictly pertains to benefits in Federal
procurement. Companies which are 8(a) firms automatically qualify
for SDB certification.
Todays 8(a) Business Development Program is strengthened and improved
to be a truly effective business development vehicle. New regulations
permit 8(a) companies to form beneficial teaming partnerships and
allow Federal agencies to streamline the contracting process. New
rules make it easier for non-minority firms to participate by proving
their social disadvantage. We also have implemented the new Mentor-Protégé Program to
allow starting 8(a) companies to learn the ropes from experienced
businesses. Our task is to teach 8(a) and other small companies
how to compete in the Federal contracting arena and how to take
advantage of greater subcontracting opportunities available from
large firms as the result of public-private partnerships.
The new and improved 8(a) Program has become an essential instrument
for helping socially and economically disadvantaged entrepreneurs
gain access to the economic mainstream of American society. SBA
has helped thousands of aspiring entrepreneurs over the years to
gain a foothold in government contracting. Participation is divided
into two phases over nine years: a four-year developmental stage
and a five-year transition stage. In fiscal year 1998, more than
6,100 firms participated in the 8(a) Program and were awarded $6.4
billion in Federal contract awards.
Eligibility Requirements
To qualify for the program, a small business must be owned and
controlled by a socially and economically disadvantaged individual.
Under the Small Business Act, certain presumed groups include African
Americans, Hispanic Americans, Asian Pacific Americans, Native Americans,
and Subcontinent Asian Americans. Other individuals can be admitted
to the program if they show through a "preponderance of the
evidence" that they are disadvantaged because of race, ethnicity,
gender, physical handicap, or residence in an environment isolated
from the mainstream of American society. In order to meet the economic
disadvantage test, all individuals must have a net worth of less
than $250,000, excluding the value of the business and personnel
residence.
Successful applicants must also meet applicable size standards
for small business concerns; be in business for at least two years;
display reasonable success potential; and display good character.
Although the two-year requirement may be waived, firms must continue
to comply with various requirements while in the program.
Applying to the 8(a) Program
You can apply to the 8(a) Program by contacting any SBA district
office. For more information or questions, call the Division of
Program Certification & Eligibility at (202) 205-6417.
Learn more about this program. |