All About 8(a) Certification Requirements

Small firms owned by members of minority or disadvantaged groups are given preferential treatment under Section 8(a) of the Small Business Act when competing for federal government contracts. Small firms that are certified under section 8(a) are eligible for a business support package as well. The Small Business Administration administers Section 8(a), which requires enterprises to prove ownership as well as size to be certified for the program. Let’s have a look at the 8(a) requirements.


Requirements for Ownership

Businesses owned by African-Americans, Hispanics, Native Americans, or Asian-Americans owning at least 51 percent of the company are eligible for 8(a) certification. These all come under the 8(a) requirements, followed by businesses owned by groups or cooperatives comprised of qualified individuals, such as Native American tribe-owned businesses, who are also eligible for certification. Before applying for the 8(a) program, a company owner who is not a member of an eligible group must submit documents proving discrimination based on factors such as disability or geographic isolation, as well as specific proof of economic necessity.

Small Business Definition

To understand the 8(a) requirements and to be eligible for the 8(a) aid program, businesses must fit the Small Business Administration's definition of a small business. A small business cannot be the market leader in the industry segment for which it seeks government contracts. It must also adhere to the size restrictions imposed by its industry. The SBA Table of Small Business Size Standards contains these regulations. Most manufacturing and mining companies have a limit of 500 employees. Non-manufacturing businesses are classed based on their yearly income, which cannot exceed $7 million in most situations.

Additional Conditions

Considered as the 8(a) requirements for the 8(a) program, a small firm must have been in operation for at least two years. Its eligible owners must have complete decision-making authority over the company and be "of good character." Each applicant must provide a personal history statement to the Small Business Administration, in which she must disclose any criminal records. Applicants may also be asked to participate in character evaluation interviews by the SBA.

Obtaining Certification under Section 8(a)

The Small Business Administration (SBA) encourages entrepreneurs to apply for 8(a) certifications online. To apply for the 8(a) program, as an 8(a)requirement you must first register as a contractor with the federal government's Central Contractor Registration database, then register with the SBA's General Log-in System, or GLS. After that, an applicant can access an interactive 8(a) application form by logging in with her GLS account. After completing and submitting the online application, the applicant must additionally mail physical copies and supporting documents to the SBA. Completed applications can take up to 90 days for the SBA to reply.

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