United States: 8(a) Small Business Development Program

 The Minority Small Business and Capital Ownership Development Program (often referred to as the "8(a) Program") provides training, technical assistance, and contracting opportunities to participating small businesses in the form of set-aside and sole-source awards. The Small Business Administration (SBA) oversees the 8(a) small business program. Small businesses with "potential for success" and that are "unconditionally owned and controlled by one or more socially and economically disadvantaged individuals of good character who are citizens of and resident in the United States" are often eligible for the program.



Eligibility for the 8(a) small business program

As previously stated, 8(a) small business program eligibility is generally limited to small businesses that demonstrate "potential for success" and are "unconditionally owned and controlled by one or more socially and economically disadvantaged individuals of good character who are citizens of and residing in the United States." Members of particular racial and ethnic groups, such as Black Americans, Hispanic Americans, Native Americans (Alaska Natives, Native Hawaiians, or enrolled members of a federally or State recognized Indian Tribe), and Asian Pacific Americans, are believed to be socially disadvantaged. Importantly, while Alaska Native Corporations (ANC), Community Development Corporations (CDC), Indian tribes, and Native Hawaiian Organizations are all qualified to participate in the 8(a) small business program, they do so on slightly different terms.



If you are not a member of one of these categories, you can still show that you are socially disadvantaged by satisfying the requirements of the 8(a) small business program. Individuals must demonstrate that they have an objective differentiating trait that has led to social disadvantages, such as race, ethnic origin, or gender, and that their social disadvantage occurred in American society rather than in other nations, according to SBA regulations. Finally, the individual's social disadvantage must be long-term and serious, not transient or inconsequential, and it must have harmed his or her ability to enter or develop in the commercial sector.

An individual must have a net worth of less than $750,000 at the time of enrollment and for continuous eligibility (excluding ownership of an 8(a) small business and equity in his or her primary residence). When determining whether an applicant has good character, the SBA analyses any criminal conduct, violations of SBA regulations, or debarment or suspension from government contracts. To demonstrate its potential for success, a company must have been in business for at least two years in its primary industry categorization before applying to the program.


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