FedBiz’5 Podcast | Episode 23: 8(a) – Helping Minority and Small Disadvantaged Businesses Grow
8(a) – Helping Minority and Small Disadvantaged Businesses Grow
The 8(a) Business Development Program and Certification helps minority and small disadvantaged businesses grow through a program of federal contracting preferences and set asides with the goal of awarding at least 5% of all federal contracting dollars to qualified businesses. Last year the program exceeded its goal and awarded approximately $60 billion or almost 10% of all federal contracting dollars.
In this episode of FedBiz’5 we are hosting Amanda Bach from FedBiz Access to discuss the benefits of the 8(a) Business Development Program and Certification (“8(a)”).
The goal of the 8(a) program is to help fuel business growth for U.S. small businesses 51% or more owned and controlled by socially and economically disadvantaged individuals.
Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and Subcontinent Asian Americans are presumed to be socially disadvantaged under federal law. This also includes small businesses owned by Alaska Native corporations, Community Development Corporations, Indian tribes, and Native Hawaiian organizations.
In determining economically disadvantaged status requires an evaluation of the individual’s total assets, net worth, and personal income for the past three years.
- The individual’s total assets must be valued at $6 million or less. This calculation is based on the fair market value of all assets, including the primary residence and the value of the business concern.
- The individual’s net worth must be less than $750,000. This calculation excludes the individual’s ownership interest in the applicant concern, the individual’s equity interest in his or her primary residence, funds invested in a qualified Individual Retirement Accounts (IRA) or other official retirement account.
- The individual’s personal income must be $350,000 or less. This calculation is based on the individual’s adjusted gross income averaged over the last three years.
In addition to the requirements stated above, the applicant must be in business for two years, demonstrate good character and potential to perform on contracts. Businesses that participate in the program receive training and technical assistance designed to strengthen their ability to compete effectively.
A government business mentor is assigned to the business to assist in the efficient utilization of certification to win awards. It’s like having your own government coach to help you navigate federal contracting. The 8(a) certification lasts for nine years, and the business can earn up to $100 million through the program.
FedBiz Access has over 21 years of experience working with companies to help them win business by ensuring their research, engagement strategy, registrations, set-aside certifications, and GSA Multiple Award Schedules are current, complete, and compliant.
