The 8(a) Business Development Program is designed to assist economically disadvantaged people so they can grow their small businesses in the US with technical, financial, and administrative support. At Globe Live Media we explain its benefits and its requirements to participate
The 8(a) business development program is a support program carried out by the United States Small Business Administration (SBA), designed to help businesses run by socially and economically disadvantaged people in the country. This allows small businesses to receive administrative, technical, financial and procurement assistance.
At Globe Live Media we tell you what are the benefits of participating in this program, as well as its eligibility requirements to qualify and obtain assistance.
What benefits can I get from participating in the 8(a) Business Development Program?
According to the SBA, all businesses that participate in the 8(a) program can:
1) Bid for and receive reserved and exclusive provider contracts efficiently.
2) Receive personalized assistance from specialists dedicated to helping businesses grow and achieve their business goals.
3) Receive mentoring from experienced businesses through the SBA mentor-protégé program.
4) Connect with procurement and legal compliance experts on key aspects of your business, such as business growth, finance and public procurement.
5) Obtain the right to receive excess federal assets with priority.
6) Receive free training from other programs such as the 7(j) Administrative and Technical Assistance Program.
How can I qualify for assistance from the 8(a) Business Development Program?
In order to participate in this program, the following requirements must be met:
1) Being a small business.
2) 51% ownership must be controlled by economically disadvantaged US citizens.
3) Have a personal net worth of $850,000 or less, an adjusted gross income of $400.00 or less, and $6.5 million or less in assets.
4) Demonstrate the potential for success (according to the SBA, this implies having been in business for at least two years).
If you meet these requirements, you must follow the steps below:
1) You must identify your primary NAICS code: In case you don’t know, NAICS stands for the North American Industry Classification System, and is the standard used to classify entity establishments for the purpose of to collect, analyze and publish statistical data related to the economy of US companies.
On the official NAICS website you must identify the code that best reflects your primary business activity. It is a self-assigned code, in other words.
2) Once you do this, you will need to register your business with the System for the Award of Contracts (SAM.gov).
3) Finally, you will be able to apply for 8(a) certification.