8(a) Business Development Program

April 13, 2006

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The 8(a) Business Development Program, like the Small Disadvantaged Business Certification Program described above, is administered by SBA and designed to help small disadvantaged businesses compete in the American economy.

(Note that companies that are certified as 8(a) firms automatically qualify for SDB certification.)

Example

The 8(a) Business Development Program was named for a section of the Small Business Act. In fiscal year 2003, more than 8,200 firms participated in the 8(a) program and were awarded $9.56 billion in federal contract awards.

In addition to the federal procurement benefits available through the SDB Program, for which 8(a) firms automatically qualify, 8(a) firms receive a broad scope of assistance, including one-on-one assistance and coaching from a Business Opportunity Specialist to help them grow and expand their businesses. Under this program, 8(a) businesses enter into a nine-year partnering relationship with the SBA; a four-year developmental stage and a five-year transition stage.

During the developmental stage, businesses are offered help in expanding their business and fostering meaningful business relationships. During the transitional stage, businesses are helped to become more effective in both the large business and government sector market in dealing with complex business deals and to prepare for post-8(a) program expansion and development.

The overall goal of the program goal is to graduate firms that will go on to thrive in a competitive business environment. To achieve this end, SBA district offices monitor and measure the progress of participants through annual reviews, business planning, and systematic evaluations.

At any time during a firm's term, the SBA may terminate a firm's participation in the 8(a) program for non-compliance with program requirements and regulations.

For requirements on the amount of work that must be performed by the prime contractor in order to be awarded an 8(a) contract, see our discussion about the Small Business Set-Aside Program.

For more information, see these topics: