SBA 8(a) Certification
Facts
 What other eligibility requirements
apply for individuals or businesses
(a) Good character. The
applicant or Participant and all its principals must have good character.
(1) If, during the processing of an application, adverse information is obtained from the
applicant or a credible source regarding possible criminal conduct by the applicant or any
of its principals, no further action will be taken on the application until SBA's
Inspector General has collected relevant information and has advised the AA/8(a)BD of his
or her findings. The AA/8(a)BD will consider those findings when evaluating the
application.
(2) Violations of any of SBA's
regulations may result in denial of participation in the 8(a) BD program. The AA/8(a)BD
will consider the nature and severity of the violation in making an eligibility
determination.
(3) Debarred or suspended concerns or concerns owned by debarred or suspended persons are
ineligible for admission to the 8(a) BD program.
(4) An applicant is ineligible
for admission to the 8(a) BD program if the applicant concern or a proprietor, partner,
limited liability member, director, officer, or holder of at least 10 percent of its
stock, or another person (including key employees) with significant authority over the
concern:
(i) Lacks business integrity as demonstrated by information related to an indictment or
guilty plea, conviction, civil judgment, or settlement; or
(ii) Is currently
incarcerated, or on parole or probation pursuant to a pre-trial diversion or following
conviction for a felony or any crime involving business integrity.
(5) If, during the processing of an application, SBA determines that an applicant has
knowingly submitted false information, regardless of whether correct information would
cause SBA to deny the application, and regardless of whether correct information was given
to SBA in accompanying documents, SBA will deny the application. If, after admission to
the program, SBA discovers that false information has been knowingly submitted by a firm,
SBA will initiate termination proceedings and suspend the firm. Whenever SBA determines
that the applicant submitted false information, the matter will be referred to SBA's
Office of Inspector General for review.
(b) One-time eligibility. Once a concern or disadvantaged individual upon whom eligibility
was based has participated in the 8(a) BD program, neither the concern nor that individual
will be eligible again.
(1) An individual who claims disadvantage and completes the appropriate SBA forms to
qualify an applicant has participated in the 8(a) BD program if SBA approves the
application.
(2) Use of eligibility will
take effect on the date of the concern's approval for admission into the program.
(3) An individual who uses his
or her one-time eligibility to qualify a concern for the 8(a) BD program will be
considered a non-disadvantaged individual for ownership or control purposes of another
applicant or Participant. The criteria restricting participation by non-disadvantaged
individuals will apply to such an individual.
(4) When at least 50% of the assets of a concern are the same as those of a former
Participant, the concern will not be eligible for entry into the program.
(5) Participants which change
their form of business organization and transfer their assets and liabilities to the new
organization may do so without affecting the eligibility of the new organization provided
the previous business is dissolved and all other eligibility criteria are met. In such a
case, the new organization may complete the remaining program term of the previous
organization. A request for a change in business form will be treated as a change of
ownership.
(c) Wholesalers. An applicant concern seeking admission to the 8(a) BD program as a
wholesaler need not demonstrate that it is capable of meeting the requirements of the
nonmanufacturer rule for its primary industry classification.
(d) Brokers. Brokers are ineligible to participate in the 8(a) BD program. A broker is a
concern that adds no material value to an item being supplied to a procuring activity or
which does not take ownership or possession of or handle the item being procured with its
own equipment or facilities.
(e) Federal financial obligations. Neither a firm nor any of its principals that fails to
pay significant financial obligations owed to the Federal Government, including unresolved
tax liens and defaults on Federal loans or other Federally assisted financing, is eligible
for admission to or participation in the 8(a) BD program.
(f) Achievement of benchmarks.
Where actual participation by disadvantaged businesses in a particular SIC Major Group
exceeds the benchmark limitations established by the Department of Commerce, SBA, in its
discretion, may decide not to accept an application for 8(a) BD participation from a
concern whose primary industry classification falls within that Major Group.
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