Small company owners that participate in the SBA’s 8(a) Business Development Program receive an SBA 8(a) certification. This nine-year initiative promises to provide small and underserved firms 5% of all federal contracts annually. According to the SBA, a disadvantaged business is one that is run by a person who has faced discrimination on the basis of race, region, or culture. Black Americans, Native Americans, Hispanic Americans, and those who have faced obstacles due to their race, gender, birthplace, professional status, or physical ability are among the small company owners who may be eligible for an 8(a) certification.
The SBA collaborates with government agencies to urge them to grant contracts to companies participating in the 8(a) program. An 8(a) certified organization can use certain federal contractual preferences after getting the certification. Throughout the program, these small company owners also receive technical support and training to aid in the expansion of their enterprises.
What benefits do SBA 8(a) certifications offer?
Small company owners who receive an SBA 8(a) certification have access to government contracts created especially for 8(a) enterprises, which offers several financial advantages. You can become qualified for two different types of specialized government contracts by getting an 8(a) certification. The first one is a set-aside contract, which restricts competition to just 8(a) program participants who are small enterprises. The second type of contract is a sole-source one, which the government awards without performing a formal procurement procedure. Getting an SBA 8(a) certification has advantages besides the financial rewards. They include:
- Support in business development: Business opportunity experts can offer 8(a) business owners specialized guidance to help them expand their enterprises and reach their corporate objectives.
- Mentoring program: With the SBA’s mentorship program, small company owners participating in the 8(a) program can gain knowledge from more seasoned entrepreneurs after they complete their SBA 8(a) application.
- Access to experts: Participants in the 8(a) program have the opportunity to get in touch with compliance specialists who can assist them know the rules and guidelines for government contracting.
- Free training: The SBA’s management and technical support program offers free training to 8(a) participants after they are done with the SBA 8(a) application. Assistance with marketing, leadership development courses, and business consultancy are examples of further training.
- Eligibility for a federal excess: 8(a) business owners may be qualified to receive a government surplus of goods or property to help with their operations.
How to become certified under SBA 8(a)
The procedures you can take to complete your SBA 8(a) application, get a certification and register in the program are as follows:
1. Fulfill the eligibility criteria
Verify to ensure if you fulfil the SBA standards for the program before you start the SBA 8(a) application. Requirements are given below:
Candidates who are U.S. citizens by birth or adoption are eligible for the program. The SBA defines a small business differently depending on the sector, and you may determine whether your firm qualifies on the agency’s website. When deciding whether or not a company qualifies as a small business, the SBA takes into account both the number of employees and revenue. Only applicants who have never participated in the program before are accepted by the SBA. If a business owner has at least 51% ownership or control of the company, they can qualify for the 8(a) program. An individual’s net worth of $750,000 or less, an estimated gross income of $350,000 or less, and assets worth $6 million or less are conditions for the program.
2. Collect supporting documentation
After confirming that you are eligible for the program, gather the supporting materials you will need to submit with your SBA 8(a) application. Depending on your business, the SBA could request various paperwork.
3. Register your business
Business owners must sign up in the System for Award Management or SAM, according to the SBA. You verify that your company has a Tax Identification Number or TIN or Employer Identification Number or EIN to pay the taxes when you are open for business. In order to register for SAM, you must also possess a Data Universal Numbering System also known as DUNS number, which serves as your company’s identification code for requesting federal funding.
4. Compose an article
Before starting the SBA 8(a) application, it’s a good idea to write a story on the social and economic hardships you’ve experienced as a small business owner. Throughout your narrative, include specific examples to support your opinion that you are qualified for the program.
5. Join the program.
In order to get an official certification as an 8(a) business owner, it’s crucial to visit with a local SBA agent after being accepted into the program. To contact one of the SBA’s district offices, visit the organization’s website.
You have two options for submitting your SBA 8(a) application after you’ve created a narrative and collected supporting materials: online through the SBA website or on paper, which you can collect from your nearby SBA district office. Applying to the program is free. The SBA has 90 days from the time it receives your application to assess it and determine whether to approve you. An official notification will be sent to you either by email or postal mail.