If you have spent time researching the 8(a) Business Development Program and its potential benefits for your company, we understand that you likely have many questions. Especially since the 8(a) program has undergone some updates. You may be wondering if the program applies to you, how to apply, and where to start. This blog aims to answer important FAQs, addresses concerns about recent changes, and offers a guide to navigating the program's dynamic landscape.
What is the 8(a) Business Development Program?
First, let's briefly explain the program and how it could benefit you before addressing the FAQs. These individuals belong to one of the four categories defined by the Small Business Administration (SBA): Veteran-owned, Woman-owned, Minority-owned, or Owned by a person with disabilities. Minority-owned businesses are those that are owned or controlled by individuals belonging to specific groups, including Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, Subcontinent Asian Americans, and other groups designated by the SBA.
If you think your firm qualifies as a small, disadvantaged business, your next step is to review the qualifications and the process to become a certified 8(a) business.
Do I Qualify for the 8(a) Program?
To qualify for the 8(a) Program, a small business must be owned and controlled by a socially and economically disadvantaged individual by 51% or greater. Firms can self-represent as a small, disadvantaged business for any federal contracting program if they genuinely believe they meet the ownership and control criteria.
The qualifying owner must have a personal net worth of $750,000 or less, an adjusted gross income of $350,000 or less, and total assets not exceeding $6 million. It's important to note that non-disadvantaged individuals may be involved in management roles within the applicant or participant. Before initiating an 8(a) application, utilizing the "Am I Eligible" tool on certify.SBA.gov and referring to the SBA checklist can help ensure eligibility and facilitate a smoother application process.
What are the Recent Changes to 8(a) Contractors in the MAS Program?
In July 2023, the U.S. District Court of Tennessee made a ruling affecting the 8(a) Business Development program. Before this this ruling, individual Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and Subcontinent Asian Americans applying for the program could establish that they were socially disadvantaged by demonstrating that they held themselves out as a member of one of those designated groups.
In this ruling, the Court barred the SBA from using the presumption of social disadvantage to administer the 8(a) Program. The SBA is now requiring all 8(a) participants who originally relied upon the presumption of social disadvantage in their application to re-establish their 8(a) Program eligibility by completing a social disadvantage narrative.
Additionally, GSA and the SBA are working together to establish a Multiple Award Schedule (MAS pool) for 8(a) contractors. The pool will include both new and existing 8(a) MAS contractors who are currently participating in the 8(a) Business Development Program. GSA and the SBA will accept the contracts of these contractors into the pool. Once accepted, contractors will become eligible for competitive and sole source 8(a) set-asides under their GSA Schedules.
What Are the Benefits of the 8(a) Pool Program?
Benefits of this new pool for both contractors and government customers include:
- Increased opportunities for 8(a) contractors
- Access to a large number of 8(a) contractors and other socio-economic contractors to meet socio-economic goals
- Increased ordering flexibility under the MAS program, including sole source awards
- Streamlined acquisition processes to incentivize agencies to use 8(a) solutions
- Standard processes between GSA and the SBA
However, if you have exited the 8(a) program yet still has the 8(a) socio-economic indicator because you haven’t re-represented your socio-economic status, you are not allowed to participate in the pool.
FAQs On SBA's 8(a) Business Development Program
We have covered the basics of the 8(a) Program. Now, let's dig into some FAQs. As participants of the 8(a) Program adapt to recent changes, it’s important to keep these key FAQs in mind.
How Can I Prepare My Social Disadvantage Narrative?
A Guide for Writing a Social Disadvantage Narrative is available on the Certify Knowledge Base. Additionally, participants are encouraged to review SBA’s webinar session 8(a) information videos.
Can I Use Examples of Social Disadvantage from Any Point in My Life?
Yes, examples can relate to any time but must detail how incidents impacted entry or advancement in the business world.
Can I Provide Evidence of a Social Disadvantage Different Than the Basis Used in My Original Approval?
Yes, participants may use a different basis, offering flexibility in demonstrating social disadvantage.
I Have a Pending Contract Award and am Required to Submit a Social Disadvantage Narrative. When Must I Submit One By?
Timely submission is crucial. SBA encourages avoiding delays to ensure continued eligibility and timely contract awards. Reach out to your Business Opportunity Specialist for support.
If SBA Determines My Social Disadvantage Narrative Lacks Detail, Will I Get a Chance to Revise It?
Yes, participants will have an opportunity to provide more detail upon SBA's request.
If My Firm Was Certified Before the Court’s Ruling on July 19, 2023, Do I Still Have to Submit a Social Disadvantage Narrative?
Yes, compliance with the Court’s order requires submitting a narrative to establish social disadvantage.
Once SBA Approves My Social Disadvantage Narrative, Am I Required to Get Another Approval Before Each New Contract Award?
No, participants establish social disadvantage only once for their program term unless significant changes affecting eligibility occur.
Will SBA Grant an Extension to Our Program Term?
No, the 9-year term of participation in the 8(a) program is set by law, and SBA does not have the authority to extend it.
I Submitted a Social Disadvantage Narrative During My 8(a) Application Process in 2017 or 2018. Is a New Narrative Required?
Yes, a new narrative is required as SBA now determines individual social disadvantage based on presumed group disadvantage.
Don’t Miss Out on Your Small Business Designation
The 8(a) Business Development Program has numerous benefits for small businesses. The application process is electronic, and you can access a checklist, tools, training, and a complete list of application guides at certify.sba.gov. It can be challenging to navigate the MAS program, and it's important to take advantage of the contracting opportunities available for small businesses. If you need assistance with the 8(a) Program qualification process or have any queries regarding your GSA Schedule, please feel free to contact us.
