Small Business Set-Aside Program

8(a) Business Development Program

The 8(a) Business Development Program is a nine-year program created to help firms owned and controlled by socially and economically disadvantaged individuals gain access to the federal marketplace. Named after Section 8(a) of the Small Business Act, this program is one of the most effective ways for eligible small businesses to win federal contracts.

5% of contracts

Government Goal

$4.5M (services)

Sole Source Limit

9 years

Program Duration

~6,000 firms

Participants

Eligibility Requirements

Small Business Status

Must qualify as a small business under SBA size standards for your primary NAICS code

Social Disadvantage

At least 51% owned by individuals who are socially disadvantaged (presumed groups: Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, Subcontinent Asian Americans)

Economic Disadvantage

Owner must demonstrate economic disadvantage: personal net worth under $850,000 (excluding primary residence and business equity), adjusted gross income under $400,000 averaged over 3 years, total assets under $6.5 million

Good Character

Owner must demonstrate good character and potential for success

Control & Management

Disadvantaged individual(s) must control daily business operations and make long-term decisions

Two Years in Business

Generally must be in business for at least two years (waivable in certain circumstances)

How to Apply

Certification timeline: Typically 90 days, though complex applications may take longer. SBA may request additional documentation which extends the timeline.

Complete SAM Registration

Create Certify.SBA.gov Account

Create an account on certify.sba.gov to begin the 8(a) application process

Gather Required Documents

Collect business and personal documents including tax returns, financial statements, organizational documents, and personal financial information

Complete Application

Answer all questions in the online application truthfully and completely

Upload Supporting Documents

Upload all required documentation including proof of disadvantaged status, ownership documents, and financial records

Submit and Track

Submit application and track status; respond promptly to any SBA requests for additional information

Program Benefits

Sole-source contracts up to $4.5 million (manufacturing up to $7 million)

Access to competitive 8(a) set-aside contracts

Business development assistance from SBA

Mentor-Protégé Program eligibility

Joint venture opportunities through 8(a) JV Program

Access to 8(a) GWACs like STARS III

Management and technical assistance

Surplus government property access

SBA-guaranteed loans with favorable terms

Contract Types Available

8(a) Sole Source (non-competitive)8(a) Competitive Set-Aside8(a) Joint Venture contracts8(a) Mentor-Protégé Joint Ventures8(a) GWAC task orders (STARS III, etc.)8(a) GSA Schedule orders

Common Mistakes to Avoid

Incomplete or inaccurate financial documentation
Not demonstrating clear control by disadvantaged owner
Failing to meet economic disadvantage thresholds
Poor quality business plan or capability statement
Not responding promptly to SBA information requests
Misunderstanding the two-year in business requirement

Frequently Asked Questions

How long does 8(a) certification take?

The SBA targets 90 days for processing, but complex applications may take longer. Ensure all documentation is complete to avoid delays.

Can I have 8(a) and other certifications simultaneously?

Yes, you can hold multiple certifications including HUBZone, SDVOSB, and WOSB along with 8(a) certification if you meet the requirements.

What happens after 9 years in the program?

After 9 years, firms graduate from the 8(a) program. Graduated firms retain other applicable certifications and can still compete for non-8(a) small business contracts.

Can I apply if I haven't been in business for 2 years?

The 2-year requirement can be waived if you demonstrate substantial business management experience and can show evidence of business potential.

Tips for Success

Work with a SCORE mentor or SBDC before applying
Have a CPA prepare financial statements
Document your personal narrative of social disadvantage
Develop a clear business development plan
Build relationships with agencies before certification
Consider starting with subcontracting to build experience

Program Information

Administrator:Small Business Administration (SBA)

Government Goal:5% of all federal contracting dollars

Renewal:Annual reviews are conducted by SBA. Firms must submit annual updates through certify.sba.gov demonstrating continued eligibility. After 9 years, firms graduate from the program.