Minority Business Development 8(a)

The SBA's Section 8(a) Program is intended for business development purposes to help socially and economically disadvantaged business owners. SBA assists these firms in gaining equal access to the resources necessary to develop their business and, thereby, improve their ability to compete on an equal basis in the mainstream of the American economy.

Business development is usually accomplished by one-on-one counseling as the need occurs, training workshops, and assistance in expanding into federal government contracting activity.

In addition to providing training assistance in the management of their business, the program can provide information on the process of meeting both financial and bonding needs.

It is the policy of SBA to enter into contracts with other federal government agencies and to subcontract the performance of such contracts to 8(a) program participants at prices which will enable such concerns to perform the contracts and earn a profit. SBA must ensure procurement agencies that the 8(a) contractor can deliver quality products and services in a timely manner, at prices which are "fair and reasonable" to the government.

To participate in the 8(a) program, a business must be at least 51 percent unconditionally owned and operated by an individual who is a socially and economically disadvantaged citizen of the United States.

Social disadvantage is defined as individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual capabilities. Without evidence to the contrary, the following individuals are presumed to be socially disadvantaged:

• Black Americans
• Native Americans
• Hispanic Americans
• Asian Pacific Islanders, and
• Subcontinent Asian Americans.

Economic disadvantage is defined as individuals who are socially disadvantaged and whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities, as compared to others in the same or similar line of business and competitive market area who are not socially disadvantaged. Management and daily business operations must be controlled by disadvantaged individual upon whom eligibility is based.

The individual(s) must have management or technical expertise directly related to the primary product or service of the business. The business must have been established for two full years before applying.

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