Much as contractors would like, government contracts don’t just fall from the sky or drop in your lap on a regular basis. It can be a long road of making contacts and marketing yourself and your services to make that happen. But if your company falls into one of the categories defined by the Small Business Administration as “disadvantaged,” you may have some options. 

The SBA 8(a) Program is a tool to help socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society. It can, and has, helped thousands of aspiring entrepreneurs gain a foothold in government contracting. It is a nine-year program that allows qualifying businesses to compete for government contracts in their field. 

But according to Gary Alexander, an SBA business opportunities specialist, the program is not for every small business. The 8(a) program offers a broad scope of assistance to firms owned and operated by socially and economically disadvantaged individuals. 

Necessary criteria

Alexander notes there are four main criteria that owners must meet to qualify for 8(a) assistance. They must meet all these requirements (more specific details about eligibility in each are detailed on the SBA website). 

The firm must be a small business as defined by SBA:

• The business must be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals of good character and citizens of, and residing in, the United States.
• Social disadvantaged individuals who are members of designated groups — those cited on the SBA website.
• The company must have been in business for at least two years (with revenues on an upward trend). “You have to have the potential to be successful,” Alexander says.
• Personal net worth cannot exceed $250,000 at approval and $750,000 for continued eligibility. 

And, of course, Alexander notes, the company must offer a service or product that the U.S. government would purchase. That’s actually the first step, he says. 

Getting started

If a business wants to apply for 8(a) assistance, the SBA can lead them to a procurement agency, which will help determine if they would qualify. The next step is filling out a detailed application, which requires information such as the company’s last three years of tax returns. 

The application and approval process, Alexander says, may take up to 90 days. The application is reviewed for eligibility during the first 45 days. “If the application is declined, they will tell you why in great detail,” he says. A negative reply, however, does not mean a company cannot re-apply at a later date, provided the initial criteria are still met. 

If a company is approved as 8(a) certified, Alexander cautions, government work doesn’t just materialize. It is still up to the company to market themselves, along with their products and services. 

The designation doesn’t give the company government contracts — it simply gives a company the right to compete with others for designated 8(a) government contracts. 

“The most important thing is that this is a self-marketing program,” Alexander says, noting that companies can use the 8(a) designation to open doors for other opportunities in the private sector as well. “It tells the world that you’re doing pretty well; the federal government has vetted you.” 

Once a company is in the program, they can begin using online resources to find available government contracts. They remain in the program for nine years and can only be in the program one time. “We want everyone to have an opportunity to grow,” Alexander says. 

SBA officials schedule follow-up visits each year with 8(a) companies, and they also offer classes in business development, marketing and managing government contracts. 

“We want firms to continue to grow after the nine years are over,” Alexander adds. As a company approaches its ninth year in the program, “We would like 55 percent of your business to be non-8(a),” he says. The 8(a) program is designed to be a business development program not a contracting program, not take over all of a company’s business. 

Alexander says the SBA is always looking for appropriate businesses to apply. “We continue to promote the 8(a) program nationwide,” he says. 

For more information about the SBA 8(a) Program, visit www.sba.gov/content/8a-requirements-overview.