8(a) Business Development Program
This video explains how the SBA's 8(a) Program works, its eligibility requirements, technical assistance available to small disadvantaged businesses through the program and common myths about the program.
The Small Business Administration maintains and strengthens the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.
Program Accomplishments
In fiscal year 2001, 32,091 contract actions valued at approximately $6.59 billion were awarded to companies participating in the program.
Uses and Use Restrictions
This program utilizes authority provided to SBA under Section 7(j) and 8(a) of the Small Business Act to enter into procurement contracts with other Federal agencies and to subcontract the performance of these contracts to eligible program participants, and to provide access to capital and other forms of financial assistance, and to provide business training and counseling.
Eligibility Requirements
Applicant Eligibility
Firms applying for 8(a) program participation must meet certain requirements which include, but are not limited to: (a) Status as a small business; (b) at least 51 percent unconditional ownership, control and management of the business by an American citizen(s) determined by SBA to be socially and economically disadvantaged, or by an economically disadvantaged Indian Tribe, Alaska Native Corporation, or Native Hawaiian Organization; and (c) demonstrated potential for success; and (d) possess good character.
Absent evidence to the contrary, the following individuals are presumed to be socially disadvantaged: African Americans, Hispanic Americans, Native Americans, Asian Pacific Americans and Subcontinent Asian Americans.
Individuals who are not members of the named groups may establish their social disadvantage on the basis of a preponderance of evidence of personal disadvantage stemming from color, national origin, gender, physical handicap, long- term residence in an environment isolated from the American society, or other similar cause beyond the individual's control.
Economic disadvantage must be demonstrated on a case-by-case basis.
Beneficiary Eligibility
Socially and economically disadvantaged individuals and small businesses owned and operated by such individuals; economically disadvantaged Indian tribes including Alaskan Native Corporations and economically disadvantaged Native Hawaiian organizations.
Credentials/Documentation
Documentation to establish that all program eligibility criteria are met.
Aplication and Award Process
Preapplication Coordination
None.
This program is excluded from coverage under E.O.
12372.
Application Procedures
Electronic application to SBA offices through SBA's webpage at www.sba.gov. Detailed instructions, and if necessary, assistance in completing application is available at SBA District offices and on SBA's home page at http://www.sba.gov.
Award Procedures
Applicant is notified of program participation approval or decline by a letter from the SBA headquarters office. Broad range of business development assistance, including procurement, and access to capital and other forms of financial assistance and business training and counseling is provided to approved program participants.
Deadlines
Applications for program participation are accepted on an ongoing basis.
Authorization
Small Business Act of 1953, as amended, Section 8(a), 15 U.S.C. 634(b)(6), 636(j), 637(a) and (d); Public Laws 95-507 and 99-661, Section 1207; Public Laws 100-656 and 101-37.
Range of Approval/Disapproval Time
Approximately 90 days.
Appeals
Within 45 days of the date of decline letter, applicant has right to request that the decision be reconsidered. For applications declined solely on the basis of negative finding with regard to social disadvantage, economic disadvantage, ownership or control of business by socially or economically disadvantaged individuals, the applicant within 45 days of the date of the decline letter or reaffirmation of decline, has a right to appeal the decision to the SBA's Office of Hearing and Appeals.
Renewals
Not applicable.
Assistance Considerations
Formula and Matching Requirements
None.
Length and Time Phasing of Assistance
Maximum of 9 years.
Post Assistance Requirements
Reports
Annual business financial statements; annual business plan update; annual personal financial statements for each disadvantaged owner; annual certification of continuing compliance with program eligibility criteria; records of all payments, compensation and distributions made by the participant firm to each of its owners or to any person or entity affiliated with such owners; and other reports deemed necessary by SBA.
Audits
Program participation audits as needed to evaluate progress. Contract audits as and when required by Federal Acquisition Regulations.
Records
Standard business/accounting records.
Financial Information
Account Identification
73-0100-0-1-376.
Obigations
FY 07 $41,191,000; FY 08 est $44,550,000; and FY 09 $48,320,000.
Range and Average of Financial Assistance
Not applicable.
Regulations, Guidelines, and Literature
SBA Rules and Regulations, 13 CFR Section 124, SOP 80-05-02.
Information Contacts
Regional or Local Office
Initial contact should be made with the field offices listed in Appendix IV of the Catalog.
Headquarters Office
Associate Administrator for 8(a) Business Development, Small Business Administration, 409 Third Street, S.W., Washington, DC 20416.
Criteria for Selecting Proposals
None.
Social Entrepreneurship
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