The 8(a) Business Development Program
What the 8(a) program is, who qualifies, and how it helps small and disadvantaged construction firms.
The 8(a) Business Development Program is an SBA program for small businesses owned by socially and economically disadvantaged individuals. It combines a nine-year development window with the ability to receive sole-source and set-aside contracts.
Two parts of the nine years
The program runs in two phases: a four-year developmental stage and a five-year transitional stage. Firms are expected to grow toward graduating as a viable, self-sufficient business.
Eligibility basics
- The firm must be small under its primary NAICS code.
- It must be at least 51% owned and controlled by one or more disadvantaged individuals who are U.S. citizens.
- Owners must meet net-worth and income thresholds and demonstrate social disadvantage and potential for success.
Staying eligible
8(a) participants must keep their annual reviews current, maintain ownership and control requirements, and follow limits on how much 8(a) work they can receive. Losing eligibility can be gradual or sudden if a rule is missed.
General information for construction small businesses, not legal advice. Program rules are detailed; verify with SBA before applying.