8(a) Business Development Program
The 8(a) Business Development program was created to give small socially and economically disadvantaged businesses more support in receiving and competing on contracts.
This certification lasts for a maximum of nine (9) years from the date you have been accepted into the program. They consider the first four (4) years the learning years where a company is meant to grow and learn how to do better. This can be in the form of a mentor taking the 8(a) company in as a protégé. The last five (5) years are meant to be the transitional stage where an organization is prepared to leave the 8(a) program and will hopefully stay on track with what they have been taught to remain successful.
Small Disadvantaged Business
A Small Disadvantaged Business (SDB) is a self-certification with the System for Award Management (SAM). To qualify for this, the company must be small within their NAICS code to be considered small. The company’s majority owner(s) must control the daily operations of the business and they must be socially and economically disadvantaged.
Individuals that are considered socially disadvantaged are the following:
- Black Americans
- Hispanic Americans
- Native Americans
- Asian Pacific Americans
- Subcontinent Asia Americans
Other groups can become eligible either by the SBA’s ruling or by showing substantiated evidence that they were discriminated against and faced social disadvantages that negatively impacted their company.
This is found within 13 CFR § 124.1001 and 13 CFR § 124.103.
Eligibility
To count for the 8(a), you will need to be certified. When certified, you will automatically count as an SDB and can then apply for and bid on 8(a) related contracts.
To qualify, your company must meet this criteria:
- An active and compliant SAM registration.
- They must meet the criteria of an SDB.
- They must not have participated in the 8(a) program previously. This counts for the owners of the company as well as the actual company itself.
- They must meet specific net worth, gross income, and asset conditions (having these figures at or below $850,000; $ 400,000; and $6,500,000 respectively).
- The owner(s) must have good character.
- The company should be suited in such a way as to show that it can make money and stand on its own. This requirement is usually seen in the form of being at least two years old and making significant enough revenue.
These are general requirements and there may be more as your business begins the application and works to certify themselves.
Apply
You can apply for the 8(a) on your own by going to SBA’s Certify website. You will need to make sure you have all your documents ready and are prepared to answer the processor’s questions.
The full amount of time that it takes for the 8(a) to be processed and activated will depend on a case-by-case basis. This can be dependent on what is found within the ownership of the company and while looking to make sure that the information given is correct, up to date, and that there are no discrepancies.
If you do submit your application and you find that you were not prepared, your application can be rejected or denied. Once this happens, you will have to wait 90 days before you can reapply.
If you are unsure of what is needed or would like to speak with someone about your options, you can reach out to our Contractor Hotline at (855) 545-6604.