8(a) Program

The Small Business Administration (SBA) 8(a) Business Development Program was enacted in 1958 to help small disadvantaged businesses compete in the American economy, and more specifically, in the Federal contracting arena. To qualify for this Program, a firm must be a small business, unconditionally owned and controlled by one or more socially and economically disadvantaged individuals, and demonstrate a potential for success.

Under the SBA’s 8(a) Program, a small disadvantaged business is defined as one that is at least 51% owned by one or more individuals who are both socially and economically disadvantaged.

Section 8(a) does not give an advantage to an unqualified or under-qualified company, nor does the 8(a) Program guarantee a contract; it only makes one eligible for a contract. For any 8(a) company, participation is limited to 9 years maximum, during which there is a required phase-in of competitive work.

The 8(a) Program provides an incubation period enabling these companies to enter the marketplace and demonstrate the ability to perform; after that, they are on their own.