The 8a Certification Program is a nine-year business development program that allows a small economically and socially disadvantaged business with 8a status to participate and have access to government contracts.
SBA 8a certification eligibility requirements are heavily regulated and applicants seeking to get 8(a) certified must carefully review their information before sending to the SBA.
The 8a Program is managed by the SBA. This is because the 8(a) Program has a lot of statutory power. Since there is ample room for abuse, the SBA carries a large stick when overseeing the program. Getting your 8a status gives you the ability to gain sole source awards and other unique benefits. This is why the SBA 8a requirements are so strict. The SBA activity level in this program is pretty high and it takes aggressive action against small businesses for fraud and other activities.
8a Program Eligibility Criteria and Requirements – Who are Socially Disadvantaged Individuals?
Key aspects of how to get 8a status. Socially disadvantaged individuals, defined under the 8a program and 8a requirements, are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group.
- The business must be majority-owned (51 percent or more) by an individual(s).
- The individual(s) must be an American citizen, by birth or naturalization.
- The business must be majority-owned (51 percent or more) and controlled/managed by socially and economically disadvantaged individual(s).
- The individual(s) controlling and managing the firm on a full-time basis must meet the SBA requirement for disadvantage, by proving both social disadvantage and economic disadvantage.
- The business must be a small business.
- The business must demonstrate the potential for success.
- The principals must show good character.
- Separate SBA 8a eligibility requirements exist for a business that is owned by American Indians, Native Alaskans, Native Hawaiians or Certified Development Companies.
Social disadvantage must stem from circumstances beyond their control. In the absence of evidence to the contrary, people who are members of the following designated groups are presumed to be socially disadvantaged under the requirements for 8a certification:
- Black Americans
- Hispanic Americans
- Native Americans (including American Indians, Eskimos, Aleuts, and Native Hawaiians)
- Asian Pacific Americans, and
- Members of other groups designated by the SBA