8(a) Business Development Program

The 8(a) Program has become an essential instrument for helping socially and economically disadvantaged businesses gain access to the economic mainstream of American Society. The program has helped thousands of companies gain a foothold in government contracting. Participation is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage. 8(a) firms automatically qualify for Small Disadvantaged Business (SDB) certification.

Eligibility Requirements

To qualify for the program, a small business must be owned and controlled by a socially and economically disadvantaged individual.

Under the Small Business Act, the following groups are presumed to be disadvantaged: African Americans, Hispanic Americans, Asian Pacific Americans, Native Americans, and Subcontinent Asian Americans. Other individuals can be admitted to the program if they show through a "preponderance of the evidence" that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated form the mainstream of American society.

To meet the economic disadvantage test, all individuals must have a net worth of less than $250,000, excluding the value of the business and personal residence.

Successful applicants must also meet applicable size standards for small business concerns, be of good character, display reasonable success potential and be in business for at least two years. Under certain conditions the "two-years in business" requirement may be waived. While in the program, firms must continue to comply with other SBA requirements.

For additional information about the 8(a) Business Development Program visit the Small Business Administration's (SBA) 8(a) website or contact your NC PTAC Counselor for more information.