What is the 8(a) Business Development (BD) Program?
The SBA's 8(a) BD Program, named for a section of the Small Business Act, is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.
All procurement opportunities, including those under the Simplified Acquisition Threshold ($100,000), are a possible candidate for the 8(a) program. Participants can receive sole-source contracts, up to a ceiling of $3.5 million for goods and services and $5.5 million for manufacturing.
What are the basic requirements an 8(a) applicant firm must meet?
The applicant firm
- must be a small business,
- must be 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
- must demonstrate potential for success.
The applicant firm must also have been operational for at least two full years in the primary industry in which the applicant firm is seeking 8(a) program certification. Participation is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage.
For additional information regarding the 8(a)/SDB Certification process, please contact the SBA District Office in your geographical locality. To locate the SBA District Office nearest you, call 1-800-U-ASK-SBA or visit: www.sba.gov.
What is an SDB?
Small Disadvantaged Businesses are small businesses that are at least 51% owned and controlled by a socially and economically disadvantaged individual or individuals. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans are presumed to qualify. Other individuals can qualify if they show by a preponderance of the evidence that they are disadvantaged.
All individuals must have a net worth of less than $750,000, excluding the equity of the business and primary residence. The program is intended to help federal agencies achieve the government-wide goal of 5 percent SDB participation in prime contracting.
More information regarding the SDB Program can be found on the Small Business Administration (SBA) website at: http://www.sba.gov/aboutsba/sbaprograms/sdb/index.html or SBA’s Small Disadvantaged Business Certification (SDB) Questions and Answers at: http://www.sba.gov/idc/groups/public/documents/sba_homepage/press_release_08_101.pdf