Most business owners are aware of the loan guarantees provided by the U.S. Small Business Administration (SBA) to help support and develop their businesses. SBA is also the agency that helps small businesses contract with the federal government, the largest customer in the world. Included in that contracting role is the 8(a) program, which uses federal contracting opportunities to help socially and economically disadvantaged small businesses participate in the marketplace.
Under the program, SBA business development specialists provide a broad range of support such as mentoring, procurement assistance, training and other financial, management and technical assistance to help these businesses prepare to do business with the federal government and other customers.
Who is eligible
The general eligibility for the 8(a) program includes individuals who are “socially and economically disadvantaged.” This category includes people who are members of racial and ethnic minority groups and other individuals who can show individual social disadvantage. A personal net worth of $250,000 or less, excluding the value of any residence and the applicant business, is one of the parameters for economic disadvantage for the purposes of this program.