How to Become an 8(a) Company: A Step-by-Step Guide
The 8(a) Business Development Program, administered by the U.S. Small Business Administration (SBA), is designed to help small businesses owned by socially and economically disadvantaged individuals gain access to federal contracting opportunities. Here’s a detailed guide on how to become an 8(a) company:
- Understand Eligibility Requirements
Eligibility Criteria:
- Small Business: Must be a small business as defined by the SBA for your industry.
- Ownership and Control: At least 51% must be owned and controlled by U.S. citizens who are socially and economically disadvantaged.
- Social and Economic Disadvantage: Individuals must demonstrate disadvantage due to race, ethnicity, gender, disability, or other factors.
- Financial Requirements: The business must have been in operation for at least two years, but exceptions may apply if the owner has relevant experience.
- Good Character: Owners must have no recent criminal convictions or other issues that would affect the business’s eligibility.
Resources:
- SBA 8(a) Program Overview
- Prepare Required Documentation
Documentation Needed:
- Proof of Social and Economic Disadvantage: Personal and business financial statements, tax returns, and a narrative statement explaining the circumstances of disadvantage.
- Business Financial Statements: Income statements, balance sheets, and profit and loss statements.
- Ownership Documents: Articles of incorporation, partnership agreements, and stock certificates.
- Personal Background Information: Resumes of key personnel, including owners and officers.
Resource:
- SBA 8(a) Application Checklist
- Register Your Business
**1. Obtain a D-U-N-S Number: This is a unique identifier required for federal contracting.
- Apply Here: D-U-N-S Number Registration
**2. Register in SAM: The System for Award Management (SAM) is essential for federal contracting.
- Register Here: SAM Registration
- Complete the SBA 8(a) Application
Steps:
- Create an Account on SBA’s Certify.gov: This is the portal for submitting your 8(a) application.
- Access Here: Certify.gov
- Complete the Application: Follow the instructions to provide the required documentation and information.
- Submit Your Application: Once completed, submit your application for review.
Resources:
- SBA 8(a) Application Guide
- Certify.gov User Guide
- Await SBA Review
Process:
- The SBA will review your application to ensure that it meets all eligibility criteria.
- They may request additional information or documentation.
Typical Timeline:
- The review process can take several months.
- Attend an SBA Orientation Session
Description:
- The SBA may require you to attend an orientation session or meeting to further explain the benefits and requirements of the 8(a) program.
Resource:
- Find SBA District Offices for Local Orientation
- Receive 8(a) Certification
Upon Approval:
- You will receive an official 8(a) Certification from the SBA, which allows you to begin competing for 8(a) set-aside contracts.
Resource:
- SBA 8(a) Program Benefits
- Maintain Compliance
Ongoing Requirements:
- Annual Reviews: Your business will undergo annual reviews to ensure ongoing compliance with 8(a) program requirements.
- Reporting Obligations: You must regularly report on your business’s performance and compliance with program rules.
Resource:
- SBA 8(a) Program Compliance
Becoming an 8(a) company can significantly enhance your business’s opportunities in federal contracting. For more detailed information or assistance with your application, consider consulting with a professional specializing in government contracting.
For further assistance:
- Contact SBA’s Office of Business Development
- Find a Local SBA District Office
