The federal government wants to give small, disadvantaged firms at least 5% of all federal contracting dollars each year.
Program Summary
The U.S. Small Business Administration (SBA) is permitted to create a business development program known as the 8(a) Business Development program under Sections 7(j)(10) and 8(a) certification of the Small Business Act (15 U.S.C. 636(j)(10) and 637(a)). The 8(a) program is a comprehensive, nine-year initiative designed to support businesses owned and managed by people from socially and economically disadvantaged backgrounds.
Businesses that take part in the program receive technical support and training aimed at improving their capacity to compete successfully in the American market. Small enterprises controlled by Alaska Native corporations, Community Development Corporations, Indian tribes, and Native Hawaiian organizations are also permitted to take part in the 8(a) certification program. By offering various forms of management, technical, financial, and procurement aid, small business development is achieved.
To provide equal access to contracting opportunities in the federal marketplace, SBA collaborates with federal agencies to promote the greatest use of 8(a) program participants. Once approved, participants in the 8(a) certification program are eligible for federal contracting benefits as well as training and technical support aimed at enhancing their capacity to successfully compete in the US economy.
Program advantages
For seasoned, socially and economically disadvantaged small business owners who have been in operation for at least two years or more and want to increase their presence in the federal market, the 8(a) program can be a useful resource. The 8a certification program provides distinctive and beneficial company support. Although the 8(a) certification does not ensure contract awards, it is a useful tool for pursuing and seizing new government opportunities.
In the 8(a) program, accredited businesses may:
Compete effectively to win set-aside and sole-source contracts.
Receive personalized company development assistance for the duration of their nine-year term from committed Business Opportunity Specialists focused on assisting businesses to grow and achieve their goals
Utilize the SBA Mentor-Protégé program to seek out opportunities for mentorship from knowledgeable and technically proficient businesses.
Make contact with compliance and procurement professionals who are knowledgeable about laws as they relate to business expansion, financing, and government contracts.
To enhance capacity, pursue cooperative ventures with established companies.
Earn the right to priority receipt of federal surplus property
SBA's 7(j) Management and Technical Assistance program offer free training.
Your company is qualified to compete for the program's sole-source and competitive set-aside contracts thanks to the 8a certification. The government permits sole-source contracts to 8(a) participants for purchases with manufacturing North American Industry Classification System (NAICS) codes to the tune of $7.5 million and $4.5 million for all other purchases. The Department of Defense requires approval of a formal justification if the sole-source 8(a) contract exceeds $100 million; all other federal agencies require approval for sole-source 8(a) contract actions that exceed $25 million. Entity-owned 8(a) program participants are eligible for sole-source contracts above these thresholds.
Participants in the 8a certification program are qualified to compete for contract awards under other socio-economic programs or small company set-asides.
Program requirements
The following requirements must be satisfied by firms to be eligible for the 8(a) program:
Take on a tiny business.
Never before taken part in the 8a certification program
Be at least 51% owned and governed by Americans who are underprivileged in both social and economic ways.
Possess assets of no more than $6 million, an adjusted gross income of no more than $350,000, and a personal net worth of no more than $750,000.
Put forward a good character.
Show that you have the potential to succeed by citing things like your two-year business history.
The maximum tenure of an 8(a) certification is nine years. The first four years are thought to be a stage of development, and the final five are thought to be a stage of transition. Maintaining compliance with program standards is necessary to continue in the program.
In Title 13 Part 124 of the Code of Federal Regulations, the federal government clearly outlines who is eligible for the 8(a) program, including what constitutes social and economic deprivation.
The maximum tenure of an 8(a) certification is nine years. The first four years are thought to be a stage of development, and the final five are thought to be a stage of transition. Maintaining compliance with program standards is necessary to continue in the program.
In Title 13 Part 124 of the Code of Federal Regulations, the federal government clearly outlines who is eligible for the 8(a) program, including what constitutes social and economic deprivation.
Make an application for 8(a) small business certifications.
Enterprises and individuals may only participate in the 8(a) program once, except for entity-owned firms. Multiple 8(a) entities may be owned by Alaska Native corporations, Tribal-owned Native Hawaiian businesses, and Community Development Corporations. Even though some businesses may qualify for the 8(a) program, they might not be prepared to work with the federal government.
By using the Am I Eligible? tool on the SBA's Certify website, businesses interested in applying for 8a certification can get a preliminary evaluation of whether the 8(a) program is appropriate for them.
You need to receive SBA certification before you may take part in the 8(a) program.
Applications are handled digitally. To acquire checklist tools, training, and information that serves as assistance before applying, go to the application page at certify.sba.gov.
To help you decide if you're ready to apply and get ready, review the Application Tips for Success Guide and schedule a meeting with a counselor at the Procurement Technical Assistance Center or your neighborhood SBA District Office.
Applying for the 8(a) program involves the following steps:
Choose your main NAICS code (s).
Activate the System for Award Management for your company (SAM).
Request 8(a) certification.
To help with compiling the required paperwork as well as completing and submitting the application, visit the Knowledge Base to obtain useful materials, such as the application guide.
You will get a notification from SBA via certify.sba.gov if it is found that your application is incomplete. SBA has 90 days to process the application and make a decision after determining that it is complete. Your profile in SAM and Dynamic Small Business Search will display your approval date and exit date for the 8(a) program after you have received certification.
Keep your certification and eligibility
Participants in the 8a certification program are in charge of preserving their eligibility for the program. Every year, each program participant must confirm that it complies with all legal and regulatory obligations. Each participant is required to submit particular data to their servicing SBA District Office every year as part of an annual assessment. Learn more about the duties involved in keeping your 8(a) certification by consulting the Annual Review Checklist.
Contact your regional SBA office if you have any inquiries about the 8(a) Business Development program.
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