A business enterprise meets the basic requirements for admission to the 8(a) Business Development program if it is a small business which is unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States, and which demonstrates potential for success. This certification is geared more for socially and economically disadvantaged individuals as defined in the Small Business Act.

The 8(a) Program offers a broad scope of assistance to socially and economically disadvantaged firms. Firms achieving 8(a) certification automatically qualify for Small Disadvantaged Business (SDB) certification. The SDB certification strictly pertains to benefits in federal procurement.

Program participation is divided into two stages: the developmental stage and the transitional stage. The developmental stage is four years and the transitional stage is five years. Participants are reviewed annually for compliance with eligibility requirements.

Benefits
The biggest and most powerful benefit of 8(a) participation: vendors can receive sole-source contracts up to a cap of $3 million for goods and services and $5 million for manufacturing.

The SBA has signed Memorandums of Understanding (MOUs) with 25 federal agencies allowing them to contract directly with certified 8(a) firms (bypassing the SBA's traditional role as "middleman"). Recent changes permit 8(a) firms to form joint ventures and teams to bid on contracts.

8(a) General Requirements for Certification

• Must be at least 51% owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States
• African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans are presumed to qualify
• Other individuals can be admitted into the program if they show through a preponderance of the evidence that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream of American society
• Individuals must have a net worth of less than $250,000, excluding the equity of the business and primary residence
• Must meet applicable size standards for small businesses in their industry
• Two full years of business operations

You can apply to the 8(a) Program online by contacting any SBA district office.

More Information
For more information on 8(a) certification, visit the SBA's Frequently Asked Questions page. You can also complete a free online form to determine whether your business qualifies for the program.

If you are still cynical about whether this program can benefit your business, check out EZCertify.com's 10 Myths of Certification.