8A Business Development Certification
The federal government's goal is to award at least five percent of all federal contracting dollars to small disadvantaged businesses each year. Small Businesses must have a viable prospective mentor before applying for the mentor - protege program. Small businesses must have a customer base that demnstrates past performance of, atleast two years. Speak to your NJIT PTAC Procurement Specialist before applying.
Program benefits
To help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities, the government limits competition for certain contracts to businesses that participate in the 8(a) Business Development program.
Disadvantaged businesses in the 8(a) program can:
Compete for set-aside and sole-source contracts in the program
Get a Business Opportunity Specialist to help navigate federal contracting
Form joint ventures with established businesses through the SBA's mentor-protégé program
Receive management and technical assistance, including business training, counseling, marketing assistance, and high-level executive development
You can compete for contract awards under multiple socio-economic programs, as they apply.
8(a) program qualifications
To qualify for the 8(a) program, follow this eligibility checklist:
- Be a small business
- Not already have participated in the 8(a) program
- Be at least 51 percent owned and controlled by U.S. citizens who are economically and socially disadvantaged
- Be owned by someone whose personal net worth is $250,000 or less
- Be owned by someone whose average adjusted gross income for three years is $250,000 or less
- Be owned by someone with $4 million or less in assets
- Have the owner manage day-to-day operations and also make long-term decisions
- Have all its principals demonstrate good character
- Show potential for success and be able to perform successfully on contracts
The federal government fully defines who qualifies for the 8(a) program — including what counts as being economically and socially disadvantaged — in Title 13 Part 124 of the Code of Federal Regulations (CFR). You can also get a preliminary assessment of whether you qualify at the SBA’s Certify website.
Get certified as an 8(a) small business
Before you can participate in the 8(a) business development program, you must be certified.
To get certified as an 8(a) business, simply use the certify.SBA.gov website. You’ll need to have a profile at SAM.gov before you can use the certification website. The information you’ll need to provide will vary based on your business structure and whether you’re already participating in other SBA programs.
After you successfully complete your certification process through certify.SBA.gov, you should update your business profile at SAM.gov to show contracting officers that your business is in the 8(a) program.
You’ll receive a letter in the mail informing you if your application was approved or not. If you’re accepted into the program, your profile in the Dynamic Small Business Search will show your approval date and exit date for the program.
Your certification will last for a maximum of nine years. You'll need to complete annual reviews to maintain your good standing in the program.
The 8(a) Mentor-Protégé Program
Designed to encourage mentor businesses to provide development assistance to protégé businesses. The purpose of the mentor-protégé relationship is to:
Enhance the capabilities of the protégé
Help the protégé meet the goals established in its SBA-approved business plan
Improve the protégé’s ability to compete for contracts
A protégé can get valuable assistance from a mentor in several areas, including:
Technical and/or management assistance
Financing in the form of equity investments and/or loans
Trade education
Government contracting
The regulations governing the 8(a) Mentor-Protégé program are set forth in 13 CFR 124.520.
Eligibility requirements
In order to qualify as a protégé, a business must:
- Already be enrolled in the 8(a) program and be in good standing
- Have at least six months remaining in its 8(a) program term
- Meet at least one of the following conditions:
- Be in the developmental stage of the 8(a) program
- Have never received an 8(a) contract
- Be less than half the size of the small business size standard corresponding to its primary NAICS code
Typically, a protégé has only one mentor at a time. But the SBA may authorize up to three mentors at one time.
In order to qualify as a mentor, a businesses must:
- Be able to carry out its responsibilities to assist the protégé
- Possess favorable financial health and good character
- Not appear on the federal list of debarred or suspended contractors
- Be able to impart value to the protégé through lessons learned and/or practical experience gained
Typically, a mentor has only one protégé at a time. But the SBA may authorize up to three protégés at one time.
How to apply
The proposed mentor and protégé must draft a written agreement to submit to the SBA. The mentor-protégé agreement must meet the following requirements:
- Address how the mentor’s assistance will help the protégé meet the goals established in its SBA-approved business plan
- Establish a single point of contact from the mentor who is responsible for managing and implementing the mentor/protégé agreement
- Provide that the mentor will assist the protégé for at least one year