
8(a) Business Development Program and Set-Asides for Small Businesses
Learn about the 8(a) Business Development Program, its purpose, participation length, and eligibility criteria for socially disadvantaged individuals. Explore set-asides for small businesses in federal government contracting and certifications.
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Eric Terrell Senior Area Manager TN District Eric.terrell@sba.gov 901-494-6906
Small Business Federal Government Contracting Certifications
8(a) Business Development Program 4
8(a) Business Development Program Introductions LOCAL, STATE OR GOV T CONTRACTS? NAME OF COMPANY YOUR NAME YEARS IN BUSINESS 5
Set-Aside for Certification Programs and Socio-Economic Categories Targeted set-asides and acquisition goals: Women-Owned Small Businesses (5%) Small Disadvantaged Businesses (including 8(a) certified) (5%) HUBZone Businesses (3%) Service-Disabled Veteran-Owned Small Businesses (3%) Set-asides are reserved for small business between $3,500 (Micro- purchase Threshold) to $250,000 (Simplified Acquisition Threshold) 6
What is the purpose of the 8(a) Business Development program? Sections 8(a) and 7(j) of the Small Business Act authorize a Minority Small Business and Capital Ownership Development program (designated the 8(a) Business Development or 8(a) BD program for purposes of the regulations in this part). The purpose of the 8(a) BD program is to assist eligible small disadvantaged business concerns compete in the American economy through business development.
What length of time may a business participate in the 8(a) BD program? (a) Except as set forth in paragraph (b) of this section, a Participant receives a program term of nine years from the date of SBA's approval letter certifying the concern's admission to the program. The Participant must maintain its program eligibility during its tenure in the program and must inform SBA of any changes that would adversely affect its program eligibility. The nine-year program term may be shortened only by termination, early graduation (including voluntary early graduation) or voluntary withdrawal as provided for in this subpart. 8
Who is socially disadvantaged? (a) General. Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities. The social disadvantage must stem from circumstances beyond their control. (b) Members of designated groups. (1) There is a rebuttable presumption that the following individuals are socially disadvantaged: Black Americans; Hispanic Americans; Native Americans (Alaska Natives, Native Hawaiians, or enrolled members of a Federally or State recognized Indian Tribe); Asian Pacific Americans. Being born in a country does not, by itself, suffice to make the birth country an individual's country of origin for purposes of being included within a designated group. 9
8(a) Business Development Program Access to business development support Build capacity and grow through contracts Nine-year program available once per lifetime 10
8(a) Business Development Program Objectives Government Contracting Ability to Thrive 01 02 03 Assistance Assist and graduate firms to allow them to thrive competitively Management and technical assistance to help companies compete for business opportunities Helps thousands of entrepreneurs understand and succeed in government contracting 11
Is the 8(a) Certification Appropriate for You? Commercial and government balance Socially and economically disadvantaged Marketing ability Diminished ability to compete Proper NAICS codes Net worth requirements 12
8(a) Program Expectations Setting Expectations Progress measurement Is a business development program Not suited for all firms Limited total dollar value of contracts 13