The Small Business Administration (SBA) 8(a) Business Development (BD) Program is a nine-year initiative designed to aid socially and economically disadvantaged business owners when entering and succeeding in the federal market.

Participants in the 8(a) BD Program are given training, technical support, business development services, exclusive access to federal contracting opportunities that are reserved for them, and a special chance for direct contract awards. A route to the expansion of new businesses is 8(a) Certification. The 8(a) BD Program use government contracting funds to diversify the revenue streams of small businesses. Once certified, 8(a) participants have access to new business opportunities to grow income through government contracts that generate jobs. 8(a) Certification is seen as a valued asset by federal contracting officers. They are aware that the 8(a) Certification grants only those small, disadvantaged business owners who are specially qualified and prepared to conduct business with the federal government.

Are you Eligible?

To qualify for the 8(a) BD Program, businesses must meet the following eligibility criteria:

-Be a small business;

-Not have previously participated in the 8(a) BD program;

-Be at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged;

-Have a personal net-worth of $850,000 or less, adjusted gross income of $400,000 or less, and assets totaling $6.5MM or less;

-Demonstrate good character;

-Demonstrate potential for success such as having been in business for two years.

The maximum tenure of an 8(a) Certification is nine years, although due to COVID, many businesses were granted an additional year. The first four years are thought to be a stage of development, and the final five are thought to be a stage of transition. Maintaining compliance with program requirements is necessary to continue in the 8(a) BD Program.

If you need assistance deciding whether your company will benefit from obtaining an 8(a) Certification, I always recommend contacting an industry expert such as ez8a or Advance 8a. Getting your business ready for growth through the government marketplace is the goal, and neither of the aforementioned charge for an initial consultation.