8a Certification for Small Business

The 8a Program, sometimes stylized as 8(a), is a business assistance program for small disadvantaged businesses owned by socially and economically disadvantaged individuals. This program is offered by the U.S. Small Business Administration (SBA) and provides a route to winning more government contracting opportunities from the U.S. federal government.

This guide will explain the basics of the 8a program, steps towards 8a certification, and how small businesses can leverage 8a certification to grow their government business.

8a Contracting Trends for 2023

The goal of the 8a Program is to help small, disadvantaged businesses compete in the government marketplace and, ultimately, thrive in a competitive environment once they graduate from the program. Eligible firms can be awarded U.S. small business government contracts on a sole-source, noncompetitive basis. However, the SBA also encourages businesses to increase their competitive potential and knowledge and to balance government and commercial business.

8a government contracts must be performed by the participant that initially received it unless a waiver is granted. The SBA may grant a waiver if the contract is passing to a company that would be eligible for a direct 8a award or it’s necessary for the business owners to surrender partial control temporarily to obtain equity financing.

If you are a small business just starting to sell to the government, and you’re interested in pursuing 8a certification as well as other methods of growing your government sales revenue, this guide offers tips and strategies your small business can use.

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Companies can participate in the 8a Program for nine years. As part of their annual review, they must submit information to their district office that includes records of payments, compensation and distributions, along with certifications stating that they meet the program requirements and that there have been no changed circumstances that might affect their eligibility.

If a small business fails to provide the necessary documentation, the SBA may initiate termination proceedings, so it is important to stay up to date with this information.

The 8a program is designed for companies that are designated as a Small Disadvantaged Business (SDB). To qualify for the 8a Program, a business must:

• Be a small business
• Be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States
• Exhibit the potential for success

Small Disadvantaged Businesses

8a certification allows businesses to qualify for small business set-aside contracts. Specifically, the U.S. federal government has a goal to award at least 5% of federal contracting dollars to qualified small disadvantaged businesses every year through the 8a program.

On top of 8a certification, businesses that are qualified under multiple socioeconomic categories can increase their status and potential of being awarded a government contract, especially if the buying agency is struggling to meet its socioeconomic contracting goals.

Small Business Certification

The SBA outlines a simple process for small businesses who are interested in applying for 8a certification.

The first step is to determine eligibility. Businesses interested in applying for the 8a program can use the Size Standards tool that is available on the SBA website to determine if they qualify as a small business that is eligible for small business contracts. Assuming that the small business determines that it should be eligible, it can then take the following steps:

1. Review the application tips for success guide: The SBA offers a guide to preparing a successful 8a application. Businesses also may find it useful to meet with their local SBA district office for more information.
2. Identify primary NAICS codes: A NAICS code (North American Industry Classification System) is the federal standard for classifying businesses by the industry in which they operate.
3. Register in the System for Award Management (SAM): Businesses need to register at the SAM.gov website to do business with the U.S. federal government.
4. Prepare and submit the application: Businesses can fill out and submit their 8a certification application at the SBA’s certify.sba.gov website. The SBA will inform businesses if their application is deemed incomplete.
5. Receive certification: The SBA will process the application and give a decision within 90 days of the application. Successful businesses will be notified of their 8a certification, their approval date and their exit date for the 8a program.

Small businesses involved in selling into the federal government contracting marketplace have more opportunities than ever to succeed. Certified members of the 8a program have access to billions of dollars’ worth of awards, sole source contracts, and set-asides each year.

Participants in the 8a Business Development Program may receive up to $100 million in sole source contracts while in the program. While in the program, 8a businesses may form joint ventures and teams to bid on contracts, allowing them to perform larger prime contracts and overcome the effects of contract bundling.

However, to compete with other similar small businesses most effectively, these companies need the right tools and resources to avoid pitfalls and to effectively navigate the federal market.

Four Ways 8a Businesses Succeed

The steps to win a government contract after gaining 8a certification can be complicated. That’s why many successful small businesses turn to tools like GovWin IQ, which offer a wealth of information on the government market, along with expert research support and a full suite of powerful tools.

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