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SBA’s 8(a) Certification Program Explained

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SBA’s 8(a) Certification Program Explained

By kmurray, Contributor and Moderator
Published: March 26, 2014 Updated: September 2, 2016

Did you know that the SBA has a program designed to help small, disadvantaged businesses compete in the federal marketplace? If you’re interested in government contracting, the 8(a) Business Development (BD) Program offers a broad scope of assistance to small businesses for which you might be eligible.  

The 8(a) BD Program has been essential for helping socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society. Ultimately, the program helps thousands of aspiring entrepreneurs to gain a foothold in government contracting.

Am I eligible?

Generally, to be approved into the 8(a) BD program and become certified, your small business must be owned and controlled at least 51% by socially and economically disadvantaged individuals who are American citizens.

You should also be able to demonstrate potential for business success and possess good character. You can read more details about eligibility requirements by visiting this page on our site.

What are the benefits?

So, how can the program help you? Once certified, you can take advantage of specialized business training, counseling, marketing assistance and high-level executive development provided by the SBA and our resource partners. You may also be eligible for assistance in obtaining access to surplus government property and supplies, SBA-guaranteed loans, and bonding assistance for being involved in the program. You can receive sole-source contracts (up to a ceiling of $4 million for goods and services and $6.5 million for manufacturing). While SBA helps 8(a) firms build their competitive and institutional know-how, the agency also encourages you to participate in competitive acquisitions.

8(a) businesses can also receive sole-source contracts (up to a ceiling of $4 million for goods and services and $6.5 million for manufacturing). While SBA helps 8(a) firms build their competitive and institutional know-how, the agency also encourages you to participate in competitive acquisitions.

In addition, 8(a) businesses can form joint ventures and teams to bid on contracts. This enhances your ability to successfully compete for and perform larger prime contracts. You can also participate in the 8(a) BD Mentor-Protégé Program which allows companies to learn the ropes from other more experienced businesses.

What else should I know?

Participation in the 8(a) BD Program is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage; the overall goal of which is to graduate 8(a) businesses that will go on to thrive in a competitive business environment.

While participating in the program, you’ll have to maintain a balance between your commercial and government business. There’s also a $100 million (or five times the value of your primary NAICS code) limit on the total dollar value of sole-source contracts that you can receive while in the program.

To make sure you stay on track to accomplish goals and follow requirements, the SBA district offices monitor and measure the progress of participants through annual reviews, business planning and systematic evaluations.

 

Related Resources

About the Author:

kmurray
Katie Murray

Contributor and Moderator

I am an author and moderator for the the SBA.gov Community. I'll share useful information for your entrepreneurial endeavors and help point you in the right direction to find other resources for your small business needs. Thanks for joining our online community here at SBA.gov!

Comments:

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Do small, economically disadvantaged, women-owned businesses have an ability to enter the 8(a) set aside program, if NOT minority owned?
Greetings Katie and Community! My name is Eric, I'm Director of Operations for a new start up corporation. We have been in business since May 19 2014. My Question is, must my company first be in business for at least 2 years prior to registering for the 8(a) certification?
The 8a program is a goldmine of resources made available to those who truly work hard and deserve its benefits. If you've blazed a trail of connections that stand behind what you've done, kept up with good business housekeeping, in short left a legacy of having a solid reliable reputation for your company, you will find your resources with government contracting. In addition to opening exclusive doors to sources your competition is excluded from entering, you also have mentoring services to show you how to implement your status as an 8a. If this were easy, everyone would be doing it. In fact, I found the application process the hardest part of certification, not contracting. I've helped businesses who were stuck on a subcontractor-$500k annually-cant qualify for higher bonding plateaus become prime contractors with more capacity and capability than they thought possible. But the contracts don't come to you, you go to them, with everything you've got. Sole-source contracting is achievable, you just need to believe in what you've got as a contractor.
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