What are the basic requirements a concern must meet for the 8(a) BD program

There are a few preliminary areas you can address immediately if you suspect you may be qualified for 8(a) certification. Remember, if you qualify for 8(a) certification, by definition you also are qualified for the SDB Program. The reverse is not necessarily true.

If you think that you could meet the very general criteria outlined below, you should complete the FREE Pre-Qualifying Interview. The Interview will will help you determine if you are likely to be certified as an 8(a), SDB or 8(a)/SDB company.

Here are the basic requirements for 8(a) Certification:

You must be a small business concern based on applicable size standards for small businesses in your industry.

All individuals upon whom eligibility is based must be U.S. citizens.

You must be the unconditional majority owner of the business.

Outside business interests are strictly limited.

You must work full-time in your business.

You must be in immediate charge of your business.

Board control in the case of a small business corporation can be exercised only by disadvantaged persons.

You must be a socially disadvantaged individual. Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities. The social disadvantage must stem from circumstances beyond their control. Under the Small Business Act, certain presumed groups include African Americans, Native Americans, Hispanic Americans, Asian Pacific Americans, and Subcontinent Asian Americans. Other individuals can be admitted to the program if they show through a "preponderance of the evidence" that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream of American society.

Ultimate control of your company must not reside with anyone other than those upon whom eligibility is based.

You must be an economically disadvantaged individual. For the 8(a) program this means all applicant individuals must have a net worth of $250,000 or less, excluding the value of the business and personal residence.

You must be in business for at least two years or apply for a waiver of the two-year requirement.

You must not have any significant unresolved federal or state tax financial issues.

You must be of good moral character.

You must not operate a business that is not eligible for certification (Broker or Non-Profit).

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