8(a) Certification | Business Development Program for Small Disadvantaged Businesses 🚀

The 8(a) program provides managerial, technical and contractual assistance to small disadvantaged businesses to ready the business and its owners for success in private industry.

The program is also an essential instrument for helping socially and economically disadvantaged entrepreneurs gain access to a wider set of buyers, partners and contracts present in mainstream American markets.

Participation in the program is divided into two phases over the nine year certification, a four-year developmental stage and a five-year transition stage.

The overall program goal is to graduate small disadvantaged businesses that will go on to thrive in a competitive business environment.

A Small Disadvantaged Business or SDB is a business that is owned by one or more individuals who are both socially and economically disadvantaged.

SDB status makes a company eligible for bidding and contracting benefit programs involved with federal procurement.

Socially Disadvantaged:
The Small Business Administration, SBA defines socially disadvantaged groups as those who have been historically subjected to racial or ethnic prejudice or cultural bias within the larger American culture.

Identified groups include - African Americans, Asian Pacific Americans, Hispanic Americans, Native Americans, and Subcontinent Asian Americans.

Members of other groups may qualify if they can satisfactorily demonstrate that they meet established criteria.

Economically Disadvantaged:
Defined as those for whom impaired access to financial opportunities has hampered the ability to compete in the free enterprise system, in contrast to people in similar businesses are not identified as socially disadvantaged.

Sole Source Contracts:
Participants can receive sole source contracts up to $4.5 million for goods/services and $7 million for mfg. Approximately half of 8(a) spending is through sole source awards. 8(a) program participants are eligible to compete for contract awards under other socio-economic programs or small business set-asides they qualify for.

10% Pricing Preference Advantage:
8(a) businesses receive a 10% pricing preference advantage over their competition. As long as the 8(a) business’s pricing is not 10% above the ‘market price’ or next closest bidder, the contract will be awarded to their business.

Increased Federal Spending:
The federal government has raised its goal for small disadvantaged business spending to 15% of all procurement awards, up from 5%. This represents billions of dollars available for 8(a) certified businesses.

Dedicated SBA Liaison:
The SBA helps 8(a) certified businesses build their competitive and institutional know-how with a dedicated liaison to proactively help cut through the federal bureaucracy to identify and win federal awards.

Joint Ventures:
8(a) firms are better able to form joint ventures with teaming partners to bid on contracts. This enhances the ability of 8(a) businesses to perform on larger contracts.

9-Year Certification:
The 8(a) certification is a nine-year award with support from the SBA to help small disadvantaged businesses succeed in the government contracting.

FEMA Contracts:
When national disasters strike, contracting officers can quickly award 8(a) sole source contracts to immediately assist disaster victims.

Boosts GSA Schedule Effectiveness:
While 8(a) certified businesses earn on average approximately $4 - $5 million annually, being on the GSA Schedule increases the effectiveness of the 8(a) certification. Contracting officers using the GSA Advantage portal for ease of procurement still need to reach the new 15% award goal for small disadvantaged business spending. It is estimated that businesses with the 8(a) certification combined with the GSA Schedule can earn double what 8(a) businesses earn with just the certification.

Program Eligibility:
Generally, to be approved into the 8(a) business developing program and become certified, the business must meet these eligibility requirements.

- Be a small, for-profit business
- An American citizen(s) by birth or naturalization must own at least 51% of the business
- The business must be majority owned and controlled by a socially and economically disadvantaged individual(s)
- The business must demonstrate potential for success
- The principle(s) must show good character
- The control individual(s) personal net worth must be $850,000 or less, with adjusted gross income of $400,000 or less, and $6.5 million or less in assets
- Have not previously participated in the 8(a) program
- Must be registered in SAM

FedBiz Access has an experienced team that takes the time to get to know your business and ask questions to ensure you understand the 8(a) program and the certification requirements and process.

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