Set-Asides

8(a) Business Development Program (8(a))

A nine-year SBA program for small businesses owned by socially and economically disadvantaged individuals, providing access to sole-source and competitive set-aside contracts.

Definition

The 8(a) Business Development Program is administered by the SBA and provides certified firms with eligibility for 8(a)-only set-aside contracts plus sole-source awards up to $4.5 million ($7M for manufacturing). Participation lasts nine years (four-year developmental + five-year transitional) with annual reviews.

When it applies

To certify for 8(a), the business must be at least 51% owned and controlled by US citizens who are both socially AND economically disadvantaged. Social disadvantage is presumed for certain racial and ethnic groups; others must demonstrate it individually. Economic disadvantage requires personal net worth under $850K (excluding firm equity and primary residence), adjusted gross income averaging under $400K over three years, and personal assets under $6.5M.

Written by the ProcureTap procurement research team. Last reviewed .