What is 8(a) Business Development Program?
An SBA program for socially and economically disadvantaged small businesses that provides access to sole-source and set-aside contracts.
The 8(a) Business Development Program is administered by the Small Business Administration (SBA) and is designed to help small businesses owned by socially and economically disadvantaged individuals compete in the federal marketplace. The program is named after Section 8(a) of the Small Business Act.
Participants gain access to 8(a) set-aside contracts (limited competition among 8(a) firms), sole-source contracts (up to $4.5M for services and $7M for manufacturing without competition), mentorship programs, and management/technical assistance. The program lasts nine years — a four-year developmental stage and a five-year transitional stage.
Eligibility requires the business to be at least 51% owned by a socially and economically disadvantaged individual who is a U.S. citizen, with a personal net worth under $850,000 (excluding primary residence and business equity). The business must also be below its SBA size standard.
Related Terms
A federal procurement restriction that limits competition for a contract to a specific category of small business.
HUBZoneAn SBA program that provides contracting preferences to small businesses located in Historically Underutilized Business Zones.
SDVOSB (Service-Disabled Veteran-Owned Small Business)A contracting program that provides set-aside opportunities and sole-source awards to small businesses owned by service-disabled veterans.
WOSB (Women-Owned Small Business)A federal contracting program that provides set-aside opportunities for small businesses owned and controlled by women.