What Is the 8(a) Program

The 8(a)/SDB program is a business development program that offers a broad scope of assistance to socially and economically disadvantaged firms. Benefits include Small Business Administration backed loans.

What Are The Benefits of  8(a)

The federal government sets a goal for a certain amount of contracting opportunities to go to Small Disadvantaged Businesses, (currently 25%).

SDB (Small Disadvantaged Business) certification strictly pertains to benefits in Federal procurement.

How To Get 8(a) Certified

8(a)/SDB certification is done at the federal government level.  The Small Business Administration manages this process.  The application process involves revealing a lot of details about you and your business finances.

8(a) firms automatically qualify for SDB certification.

According to statutory language governing the program, a business owner is considered disadvantaged if he can be certified as socially and economically disadvantaged.

A business owner(s) is presumed to be socially disadvantaged if he is a member of a minority group. He must then prove economic disadvantage by providing evidence to show that his personal net worth does not exceed the applicable thresholds ($750,000).

See 8(a) certification link below.

Certification

Description

Application Review Period

Requirements

Program Term

8(a)/SDB Certifications

The purpose of the

8(a) BD program is to assist eligible

small disadvantaged business concerns to

compete in the American economy through business development.

90 days = 8(a)

75 days = SDB

Requirements

 

An 8(a)/SDB firm must have less than $750,000 in net worth; be at least 51% owned by the disadvantaged entity.

9 years