The Small Business Administration administers two types of programs to assist small disadvantaged businesses. These programs are Small Disadvantaged Business Certification Program and 8a Business Development Program. The 8a program provides a broad scope of assistance to economically and socially disadvantaged companies whereas the small disadvantaged business certification is strictly concerned about the advantages in federal procurement. Companies that are 8a certified automatically qualify for small disadvantaged business certification.
The new regulations permit the 8a firms to form the beneficial teaming partnerships and enable the federal agencies to streamline contracting process. The new rules make it easier for the firms of non-minority status to take part by offering their social disadvantage. There is also the new Mentor-Protege Program that enables start up 8a small firms to learn the ropes from the expert businesses. The task of the 8a certification consultants is to teach the small 8a firms how to compete in the field of federal contracting and how to utilize the subcontracting opportunities available from the big businesses because of private-public partnerships.
In order to be eligible for the program, the small business should be controlled and owned by economically and socially disadvantaged person. Some of the presumed groups include Hispanic Americans, African Americans, Subcontinent Asian Americans, Native Americans and Asian Pacific Americans. Even people who are not members of these groups can be admitted to the program. In that case, individuals need to prove that they are disadvantaged because of their ethnicity, race, physical handicap, residence in a place isolated from the mainstream of the American society or gender. An individual, in order to prove that he/she is economically disadvantaged, should have a net worth of not more than 250,000 dollars. However, the value of personnel residence and business should not be included here.
Individuals who want their companies to be 8a certified should see to it that their firms meet the small size standards set by the SBA. Apart from these, the individuals should also keep in mind that their business could only be eligible for the certification if the firm has been in business for a minimum of two years. Although this two year requirement can be waived, the small companies should comply with the other requirements. The other requirements are:
• The businesses should prove that they have the potential to succeed.
• The business owner needs to have a good character.
For doing business with the federal government and to be certified under a small disadvantaged business program or the 8a business development program, you should register in the SAM.