What is the 8(a) program?

The 8(a) Business Development program or 8(a) program assists small-disadvantaged businesses to compete in the American economy and Federal marketplace. The 8(a) program provides a range of benefits to eligible businesses. These can include financial assistance, mentorship, business development support, training and technical assistance, and access to sole-source and set-aside contracts.

What businesses qualify for the 8(a) program?

The 8(a) program is limited to small business which are unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of and residing in the United States, and which demonstrates potential for success.

To be eligible for the 8(a) program, businesses must meet the following criteria:

• Small Business: The Company must meet SBA’s size regulations and table of small business size standards, measured in number of employees or average annual receipts. This means the Company can’t exceed the size standard assigned to their primary North American Industry Classification Systems (NAICS) code. Each industry has a different NAICS code (check your eligibility here using your NAICS code: https://www.sba.gov/size-standards/index.html)
• Ownership: Be at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged (explained below). To qualify as an “owner,” an individual must manage the Company’s daily operations and make major long-term decisions.
• Economically Disadvantaged: Have a personal net worth of $750,000 or less, adjusted gross income of $350,000 or less, and assets totaling $6 million or less.
• Good Character: Demonstrate good character and the ability to perform on contracts (generally, you must have been in business for at least two years)
• No Previous Participation: Not have participated in the 8(a) program previously.

SBA Certification

Under Federal law, socially disadvantaged individuals are those who have been subject to racial or ethnic prejudice or cultural bias within American society. This is because of their identities as members of groups and without regard to their individual qualities. Members of certain racial and ethnic groups are presumed to be socially disadvantaged, including: Black Americans, Hispanic Americans, Asian Pacific Americans, Native Americans (American Indians, Eskimos, Aleuts, or Native Hawaiians), and Subcontinent Asian Americans. Some racial or ethnic groups are presumed socially disadvantaged. However, individuals not belonging to the designated groups may be able to qualify. You can qualify by submitting a narrative statement of social disadvantage providing evidence they are more likely than not socially disadvantaged.

Once certified by the SBA, businesses must maintain compliance and continued eligibility. This is done by certifying on an annual basis that it meets the statutory and regulatory requirements.

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