Jump-Start Your Government Business with the SBA 8(a) Program
 |
The Small Business Administration 8(a) Program was initiated through the Small Business Act to assist disadvantaged small businesses to more effectively compete in the marketplace. The program helps these companies to access both private and government procurement opportunities.
The (8(a) Program provides business consulting services to owners of firms from disadvantaged groups. This support takes the form of procurement assistance; business counseling; financial assistance; surety bonding; and other management and technical assistance resources. The Program to positions these small companies to compete effectively for procurement and other business opportunities.
Contact the Small Business Administration district office serving your local area to begin the process toward participating in the 8(a) Program. Representatives of the SBA can answer most general questions over the telephone. Some Small Business Administration district offices offer 8(a) orientation workshops to provide additional information regarding the eligibility requirements and to review various SBA forms.
The basic requirements for an 8(a) applicant are straightforward. The applicant firm must be a small business, 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.
A small business is defined by the Small Business Administration as an entity that is organized for profit and independently owned and operated. The firm also must not be dominant in its field. Characteristics such as number of employees and sales volume, usually averaged over a three year period are dependent upon the industry in which the company operates. The basic reference used by the SBA is the Standard North American Industry Classification System (NAICS) which is used by the Federal Government to classify specific business activities that delineate the primary business of the company.
Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group. Social disadvantage must stem from circumstances beyond their control. In the absence of evidence to the contrary, individuals who are members of the specific designated groups are presumed to be socially disadvantaged.
Individuals that are not members of a designated group can claim social disadvantage on the basis of a “preponderance of evidence.” Generally, preponderance is evidence of quality and quantity which leads the decision maker to conclude, objectively, that the existence or truth of the fact(s) asserted is more probable than not. This evidence must include at least one objective distinguishing feature that has contributed to social disadvantage, such as race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society, or other similar causes not common to individuals who are not socially disadvantaged.
The government defines persons as economically disadvantaged if they are members of a socially disadvantaged group whose ability to compete effectively in the capitalistic system due to lack of access to capital and credit opportunities.
Program certification usually requires that a business be in operation for at least two years. The latest two years tax returns demonstrating operating revenue are sufficient to fulfill this requirement.
Participants in the 8(a) program receive assistance in two stages. The first stage is the development stage and the second is the transition stage. The SBA provides business development assistance in the first stage of participation in the 8(a) program. The focus of the development stage is to assist the firm in overcoming its economic disadvantage and usually lasts for four years. The transition stage is designed to help participants overcome the remaining elements of economic disadvantage and to prepare participants for leaving the Program. The second stage of the program last for five years.
Want to find out more about programs for growing your business? Check out Michael Saunders’ Websites on Government Business Grants and Business Grants for Women. Get a totally unique version of this article from our article submission service
Leave a Reply