How Does the SBA 8(a) Program Assist Minority-Owned Businesses?

Every year the federal government allocates around 15% of its contracting opportunities to small businesses. Around 5% goes to socially and economically disadvantaged business owners through the SBA 8(a) program. In this article, we will discuss what the 8(a) program is, how to qualify as an 8(a) small business, and how to get started.

What is the SBA 8(a) Program?

The government allocates a portion of its contracts to small businesses to help them compete with large companies. The contracts that are made available to small businesses are often called “small business set-asides.”

The SBA 8(a) program receives about 5% of federal contracts as set-asides for small businesses owned by socially and economically disadvantaged people and entities. The purpose of the program is to assist qualifying businesses to find and win federal contracts.

What are the Benefits of the SBA 8(a) Program?

The 8(a) program is designed to help qualifying businesses compete for and attain federal contracts. The numerous benefits of the program include:

• Enables businesses to compete for "set-aside" contracts and "sole-source" contracts.
• Business owners are assigned an Opportunity Specialist to help them navigate the application process and federal contracts as a whole.
• Businesses receive business counseling, training, marketing assistance, executive development, as well as management and technical training.
• Promotes business relationships through the SBA's Mentor-Protégé Program.

Who Can Apply for the SBA 8(a) Program?

The SBA 8(a) program is for socially and economically disadvantaged people and entities. According to government regulations, a socially and economically disadvantaged person is a person that has "been subjected to racial or ethnic prejudice or cultural bias within American society." Examples of qualifying individuals include the following:

• African Americans.
• Hispanic Americans.
• Native Americans (including native Alaskan and Hawaiian).
• Asian Americans.

What Are Other Qualifications for the SBA 8(a) Program?

If you are part of a socially and economically disadvantaged people group, here are the other qualifications to meet:

• Must be a small business.
• Must be 51% owned by a socially and economically disadvantaged person.
• Business gross income of $350K or less and no more than $6 million in assets.
• Personal net worth of $750K or less.
• Have not participated in the 8(a) program before.
• Demonstrate good character (business is not suspended, no illegal activity, submitting accurate information).

How Do You Get Certified as an 8(a) Small Business?

Certification is required before participating in the 8(a) program, but the process is rather straightforward. Here are the steps you need to take:

• Create an account with Sam.gov.
• After you have your Sam.gov account, get started with the certification process through the SBA's 8(a) certification website.
• Review the Certify Knowledge Base for helpful information and tips about the process.  

You will be notified by the SBA regarding their decision. If you are approved, your businesses will be entered into the Dynamic Small Business Search, which is the database government agencies use to look up available contractors.

How Do You Find Government Contracts?

There are a few ways businesses can find and bid on government contracts. The primary way to search for government contracts is through the sam.gov website where you created an account. There, you can search by work type, keyword, or the federal agency you want to work with.

If you want to sell your products to the government, you can contact the U.S. General Services Administration (GSA) to help you connect with government buyers.

If you prefer to begin as a subcontractor and work under another business, you can look for subcontracting positions on Subnet. You can also use the Dynamic Small Business Search to find other businesses to partner with.

Conclusion

The SBA 8(a) program is specifically tailored to help minority-owned small businesses find and win government contracts. The program also provides Opportunity Specialists to help business owners navigate the process and it offers many forms of business coaching. If you qualify as a socially and economically disadvantaged business owner and want to pursue government contracts, the SBA 8(a) program may be right for you.

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