8(a) Certification – Do You Qualify?
Find out before you buy anything!
We’ve all heard about the “magic” of the 8(a) program and how businesses can go from nearly nothing to millions and millions in revenue seemingly overnight. But a key question is, “Do YOU qualify?” Find out below!
To be certified into the 8(a) program your business must meet these basic eligibility requirements:
What is Control?
All firms must be controlled by the disadvantaged majority owner. Control and ownership are not the same and SBA evaluates it differently.
To determine control, SBA looks at multiple factors from several different supporting documents the firm provides in the application package. To be approved and remain in the 8(a) Business Development program, the firm must show that:
What is Social Disadvantage?
Before SBA can approve an 8(a) application, the disadvantaged individual(s) must show that he or she is socially disadvantaged.
The following individuals are presumed socially disadvantaged (called “presumed groups”):
Other Socially Disadvantaged Individuals: Other individuals, such as Caucasian women or Service Disabled Veterans, or others with disabilities, may be found socially disadvantaged and eligible for the program on a case-by-case basis.
An individual who is not a member of one of the presumed groups can be admitted into the 8(a) Business Development program. To do so, the business must prove to SBA that the individual(s) meeting SBA’s ownership and control requirements is socially disadvantaged. This process includes showing personal experiences where applicable in education, employment, and business history.
To show disadvantage, the individual will need to write a Narrative Statement of Social disadvantage describing how gender or disability has resulted in bias, discrimination, or harassment that has had a negative impact on the individual’s entry into or success in career or business.