The Best Way to Obtain an SBA 8(a) Certification

The federal government runs some initiatives to assist small business owners who might encounter racial or cultural bias in their workplace. The 8(a) Business Development Program run by the U.S. Small Business Administration (SBA) is one of these initiatives, that intends to assist small, minority-owned firms in obtaining federal contracts. You may wish to find out more about this program and discover how to obtain an SBA 8a certification if you own a small business and are a member of a minority group. 

In this post, we define an SBA 8a certification, list a few program advantages, and lay out the seven steps you need to do to obtain one for your small business.

An SBA 8a certification is what?

Small business owners that take part in the SBA's 8(a) Business Development Program receive an SBA 8(a) certification. This nine-year initiative intends to give small and disadvantaged firms 5% of all federal contracts. According to the SBA, a disadvantaged business is run by a person who has encountered prejudice based on race, ethnicity, or culture. Black Americans, Native Americans, Hispanic Americans, and people who have faced obstacles due to their race, gender, origin, veteran status, or physical ability are among the small company owners who may be eligible for an 8(a) certification.

The SBA collaborates with government organizations to persuade them to give contracts to companies participating in the 8a certification program. An 8(a) business can use certain federal contractual preferences after becoming certified. Throughout the program, these small business owners also receive technical support and training to aid in the expansion of their enterprises.

What advantages do SBA 8(a) certifications offer?

Small business owners who obtain an SBA 8(a) certification have access to federal contracts created especially for 8(a) enterprises, which offers numerous financial advantages. You can become qualified for two different types of specialized government contracts by obtaining an 8(a) certification. The first one is a set-aside contract, which restricts competition to only 8(a) program participants who are small enterprises. The second type of contract is a sole-source one, which the government awards without conducting an open bidding procedure.

Earning an SBA 8a certification has advantages beyond only the financial rewards.

These consist of:

• Business opportunity: Specialists can offer 8(a) business owners individualized assistance to help them expand their enterprises and realize their corporate objectives. 
• Mentorship program: Through the SBA's mentorship program, small business owners participating in the 8(a) program can gain knowledge from more seasoned entrepreneurs. 
• Access to experts: Participants in the 8(a) program can get in touch with compliance specialists who can help them comprehend the rules for government contracting at the federal level. 
• Free training: The SBA's management and technical support program offer free training to 8(a) participants. Assistance with marketing, leadership development courses, and business consultancy are examples of further training. 
• Eligibility for a federal surplus: 8(a) business owners may be qualified to receive a government surplus of goods or property to help with their operations.

 

How to become certified under SBA 8(a)

The actions you can take to obtain an SBA 8(a) certification and take part in the program are as follows:

1. Fulfill the prerequisites

Check to determine if you meet the SBA requirements for the program before you start the 8(a) certification application. Typically, the program only takes into account company owners who have been in operation for at least two years. Other prerequisites consist of:

U.S. citizenship: Candidates who are U.S. citizens by birth or naturalization are eligible for the program.

Small business: The SBA defines a small business differently depending on the industry, and you can determine whether your company qualifies on the agency's website. When deciding whether or not a company qualifies as a small business, the SBA takes into account both the number of employees and revenue.

No prior involvement: The SBA only accepts applicants who have never participated in the program before.

Ownership: To achieve 8a certification, a business owner applying for the 8(a) program must own or control at least 51 percent of the company.

Income: To be eligible for the program, applicants must have an adjusted gross income of $350,000 or less, as well as a personal net worth of $750,000 or less.

2. Compile supporting records

After confirming that you are eligible for the program, gather the supporting materials you will need to submit your application. Depending on your business, the SBA could request different documentation. Personal and corporate financial accounts, federal tax returns, and bank statements are a few documents you might wish to have on hand. Having copies of state-approved documents, such as company licenses or permits, to include with your application might also be useful. You can complete several aspects of the program application with the aid of these documents, which are easily accessible.

3. Publish your company.

Business owners must sign up in the System for Award Management, according to the SBA (SAM). You demonstrate that your company has a Tax Identification Number (TIN) or Employer Identification Number (EIN) to pay taxes when you register your business. To register for SAM, you must also possess a Data Universal Numbering System (DUNS) number, which serves as your company's identification code for requesting federal funding. A free DUNS number for your company can be created online. Once you have logged in to SAM, you may use that information to start the application process on the SBA website.

Followed by the following steps for getting the 8a certification:

4. Compose a story.

5. Enroll in the course.

6. Consult with an SBA official

7. Continue to be qualified

For any further queries regarding 8a certification, feel free to reach out to us.