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Small Business Administration 8(a) Development Program Mission Maintain and strengthen the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters. The Small Business Administration (SBA) was officially established in 1953, but its philosophy and mission began to take shape years earlier in a number of predecessor agencies. In the Small Business Act of July 30, 1953, Congress created the Small Business Administration, whose function was to "aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns." The charter also stipulated that the SBA would ensure small businesses a "fair proportion" of government contracts and sales of surplus property. The SBA 8(a) Business Development Program is named for Section 8(a) of the Small Business Act. This business development program was created to help small disadvantaged businesses compete in the American economy, and more specifically, in the federal contracting arena. To qualify for this program, a firm must be a small business, be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals, and demonstrate a potential for success. A small disadvantaged business is defined as one that is at least 51% owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly owned business that has at least 51% of its stock unconditionally owned by one or more socially disadvantaged individuals and whose management and daily business is controlled by one or more such individuals. Under the SBA’s 8(a) Program, a federal agency can sole source a contract to an 8(a) company if it meets certain criteria. In general, these criteria include that the company can demonstrate that it has the capability to perform the work and that the solicitation has not been published as a competitive procurement. There is a $3 million dollar limit on the size of a service contract that may be offered on a sole-source basis to an 8(a) company. A company that is classified as an 8(a) with tribal status is not subject to this threshold. The U.S. government provided this opportunity because unlike regular small businesses where profits generally go to one individual or one family, the profits from Native American organizations and tribal corporations are shared by hundreds – and sometimes even thousands – of Native American tribal members. To learn more about the Small Business Administration please follow the link. |
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