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8 (A) BUSINESS DEVELOPMENT PROGRAM MINORITY OWNED

The 8(a) Business Development Program is a business assistance program for small disadvantaged businesses. The 8(a) Program offers a broad scope of assistance to firms that are owned and controlled at 51% by socially and economically disadvantaged individuals. Participants can receive sole source contracts up to a ceiling of $4 million for goods and services and $6.5 million for manufacturing.8(a) firms also can form joint ventures and teamd to bid on contracts. This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one larger contract.

Benefits of a Minority Owned Small Business Certification 8(a)

  • As an 8(a) certified business, you are visible to contracting officers as a small business and Minority certified, so the pool for set-aside contracts is smaller, which maximizes your ability to receive no bid contract under $25,000.
  • Shows your company has “lasting potential” in the industry and financial stability.
  • This certification last for 9 years. You do not have to re-apply or pay for it annually.
  • It is proof that you are in good financial standing with the federal government (no federal debt) which is appealing to contracting officers.
  • 5% of all federal monetary spending is mandated to be allocated to Minority Owned Small Business certificate holders.

Separate eligibility requirements exist for a business that American Indians, Native Alaskans, Native Hawaiians and/or Certified Development Companies own.

Before SBA can approve an 8(a) Business Development program application, the disadvantaged individual(s) also must show/prove how he/she is socially disadvantaged. To prove this, the individual(s) owners must ultimately show that such personal experiences had a negative impact on entry into or advancement in the business world.

Under federal law, socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identification as members of groups without regard to their qualities.

According to the SBA, for purposes of the 8(a) Business Development program, the following individuals are presumed socially disadvantaged (called presumed groups)

  • Black Americans
  • Hispanic Americans
  • Native Americans
  • Asian Pacific Americans
  • Subcontinent Asian Americans

In the Absence of evidence to the contrary, an individual applicant is presumed socially disadvantaged if

  • He/She holds themselves out to be a member of a presumed group
  • He/She is currently identified by others as a member of a presumed group

An individual who is not a member of one of the “presumed groups” can be admitted into the 8(a) Business Development program. The business must prove to the SBA that the individual(s) meeting SBA’s ownership and control requirements is/are socially disadvantaged. The individual(s) must show personal experiences where the applicable in education, employment and business history. The individual must also provide evidence to SBA proving one’s social disadvantage.

Eligibility Requirements

  • Are you socially disadvantaged? Hispanic, Asian, African American or Native American? Or Can you prove discrimination on basis of gender, disability, veteran status, race or culture?
  • Personal net worth under $250,000 (excluding personal residence and business) cash, checking/savings accounts, real estate, IRA’s, stocks, bonds and vehicles.
  • Annual salary must be the highest paid person in the company with reasonable salary to industry and the company.
  • Total current market value of all asset must be under $4 million
  • Average 2 year adjusted gross income under $200,000
  • Must be a Small Business according to the SBA standards
  • Must have full control of the company
  • Must own 51% of the company
  • Must provide 2 most recent tax returns
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Get Certified with USBRI

USBRI has helped thousands of businesses in getting properly registered and certified as a Small Business Government Contractor. As a business owner and leader, your time and attention are most well spent actually running your company. There are many common mistakes with federal registrations and certifications that can cause delays and result in missed opportunities and possibly even fines. It is highly recommended to utilize the services of a CRS when attempting to complete these procedures for the first time. Once everything is approved and active,  your business will be displayed within the Federal Small Business Databases utilized by Contracting Officers and Prime Contractors when looking for a Certified Small Business for “RFPs” and “Direct Award Contracts”. Then going forward, your CRS is only a phone call or email away to assist with any questions, issues, changes, updates or anything else to do with these topics. After 12 months of being active and having access to a CRS, the renewal process for these items are much easier once properly established. One of the biggest issues we see is that organizations may make it through the process to become active. However, they do not understand what else needs to be completed and where. What else is important? Am I positioned to be easily found? Is there enough data there to be awarded a “Direct Award Contract”? (Federal Contracts below $250K)

Get Started On Your Certification Now

If you would like to get started on your 8(a) Program Certification, please reach out to our Help Desk at 1-888-646-9998 (M-F 9am-5pm EST). USBRI handles a majority of the certification process for you, only pulling you in where absolutely necessary. This includes updating your SAM Registration, SBA Profile and DSBS Profile after your certification goes active (including 12 months of support on the SAM Registration, Certification itself and the additional SBA/DSBS Profiles). WOSB & EDWOSB Certifications are good for 3 years once approved.

Get Started Now

What is the best avenue to sell my products/services to the government?

Answer a few questions about your business and we can provide you with a complimentary Federal Market Assessment to see what agencies are purchasing your goods/services, who the competition is, look at Direct Award Contracts in your industry (below $250K) and provide you a with a basic roadmap of the best avenue and vehicles for your company to focus on to successfully sell goods/services to the government.

After submitting this form, a CRS (Certified Registration Specialist) will reach out within 24 hours for a 15 minute informational conversation where you can ask as many questions as you like. If considering government contracting at all, or have attempted to do so without such guidance or advice; do not skip this important step as it truly makes a difference of knowing where, what and how to focus on what's most important for your success when offering goods/services to the government. This short conversation will speed up your learning curve and set you up and prepare you for success. Utilize credible resources that are available to you.

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