“To qualify for the 8(a) Program, a firm must be a small business that is unconditionally owned and controlled by one or more socially- and economically-disadvantaged individuals who are of good character and citizens of the United States and that demonstrates potential for success...”
“The 8(a) Program is only open to businesses that are small under the size standard corresponding to their primary NAICS codes. And remember: SBA will not only consider your company’s size, but will also add to it the size of any affiliates. If there’s a question as to your business’s size during the 8(a) application process, SBA may go so far as to request a formal size determination.
What is your primary NAICS code? While businesses have some leeway to select the code that fits best, the SBA may push back if the NAICS code you choose doesn’t seem to be the one in which your company does the most work. Before applying, it may be useful to review the SBA’s definition of “primary industry” at 13 C.F.R. 121.107...”
“It’s not enough to be a small business to qualify for the 8(a) Program. The business’s owner also must demonstrate suffering from social disadvantage—or, as SBA defines it, ‘racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities...”
“But participation in the 8(a) Program isn’t limited to only the groups listed in the regulations. Any individual can try to establish social disadvantage by presenting evidence showing chronic disadvantage based on a characteristic or circumstance beyond that person’s control, which has impacted that person’s education, employment, or business histories. For example (and not by way of limitation), our firm has assisted companies owned by Caucasian women and disabled veterans in obtaining 8(a) certification...”
“The company must also demonstrate that it has potential for success. This assessment generally requires a holistic view of the company: not only must it have been generating revenues in its primary industry for at least two years, but SBA will also consider every aspect of its business operations (including access to capital and financing, technical and managerial experience of the company’s managers, its past performance, and licensing requirements) to determine if the company is likely to succeed in the 8(a) Program...” Read the full article here.
Source: Back to Basics: 8(a) Program Eligibility – By Nicole Pottroff, April 11, 2022. SmallGovCon.
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