The number of 8(a) Certified firms has dropped dramatically since our firm started focusing on Federal Certifications in 2006. Back then there were almost 10,000 firms in the SBA’s 8(a) BD Program. Over time the numbers have dropped due to a couple of key reasons including attrition as an 8(a) firm is only permitted to be in the program for a nine-year period before they are graduated.

According to the Most Recent Office of Inspector General Report:

“Though over 2,000 applicants apply each year, the SBA historically rejects most applications as incomplete and missing documentation. Typically, only 25% of the applicants or approximately 500-600 applicants per year are ultimately certified to participate in the 8(a) BD Program by the Associate Administrator of the Office of 8(a) Business Development.”

Since that time, the number of 8(a) firms has declined by another 800 firms.  This drop is created unprecedented opportunities for 8(a) firms that are able to successfully navigate the 8(a) approval process.

Check out the numbers yourself since 2006, there is more money being spent with 8(a) certified firms nearly every year, especially over the last few, yet substantially fewer firms for all those contracts to go around. That means more money per firm, not a bad predicament to be in.

Year - # of 8(a) Firms - Federal 8(a) Spending in Billions $ - Contract Dollars per 8(a) Firm in Millions $

2006 - 9,700 - $23.0 B - $2.4 MM per Firm

2007 - 9,400 - $24.9 B - $2.6 MM per Firm

2008 - 9,500 - $29.3 B - $3.1 MM per Firm

2009 - 8,800 - $33.5 B - $3.8 MM per Firm

2010 - 8,400 - $34.4 B - $4.1 MM per Firm

2011 - 7,800 - $32.4 B - $4.2 MM per Firm

2012 - 7,600 - $32.3 B - $4.3 MM per Firm

2013 - 7,300 - $30.6 B - $4.2 MM per Firm

2014 - 6,800 - $34.7 B - $5.1MM per Firm

2015 - 6,600 - $35.4 B - $5.4MM per Firm

2016 - 6,700 - $39.1 B - $5.8MM per Firm

2017 - 6,300 - $40.2 B - $6.4MM per Firm

2018 - 6,100 - $46.5 B - $7.6MM per Firm

2019 - 5,900 - $46.0 B (estimated) - $7.8MM per Firm

The chief reason the SBA believes there has been a drop in the number of 8(a) firms is that from 2006-2008 there was a great deal of stimulus spending. When the economy as a whole slows down, the stimulus spending serves as free advertisement for the 8(a) program, as it did during that time period.  We have now seen a 40% drop in the number of 8(a) participation since 2006 and as you can see from the numbers above, there’s been almost a tripling in the average per 8(a) firm of contract revenue by federal agencies.

Eligible firms should not allow themselves to get discouraged and should work through the process of obtaining this certification as there has never been a more lucrative time to be 8(a) certified according to the numbers.

If you have any questions about getting qualified for an 8(a) certification or would like a more in-depth analysis about your firm’s potential, I would recommend giving an industry expert like ez8a a call at (859)442-3300. They do not charge for an initial consultation.