Get SBA 8(a) Certified

The SBA administers two particular business assistance programs for small disadvantaged businesses (SDBs). These programs are the 8(a) Business Development Program and the Small Disadvantaged Business Certification Program. While the 8(a) Program offers a broad scope of assistance to socially and economically disadvantaged firms, SDB certification strictly pertains to benefits in Federal procurement. Companies which are 8(a) firms automatically qualify for SDB certification.

New regulations permit 8(a) companies to form beneficial teaming partnerships and allow Federal agencies to streamline the contracting process. New rules make it easier for non-minority firms to participate by proving their social disadvantage. We also have implemented the new Mentor-Protégé Program to allow starting 8(a) companies to learn the ropes from experienced businesses. Our task is to teach 8(a) and other small companies how to compete in the Federal contracting arena and how to take advantage of greater subcontracting opportunities available from large firms as the result of public-private partnerships.

Eligibility Requirements

To qualify for the program, a small business must be owned and controlled by a socially and economically disadvantaged individual. Under the Small Business Act, certain presumed groups include African Americans, Hispanic Americans, Asian Pacific Americans, Native Americans, and Subcontinent Asian Americans. Other individuals can be admitted to the program if they show through a "preponderance of the evidence" that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream of American society. In order to meet the economic disadvantage test, all individuals must have a net worth of less than $250,000, excluding the value of the business and personnel residence.

Successful applicants must also meet applicable size standards for small business concerns; be in business for at least two years; display reasonable success potential; and display good character. Although the two-year requirement may be waived, firms must continue to comply with various requirements while in the program.

Getting Started

To do business with the Federal government and to be certified under the 8(a) Program or as an SDB, you must register in the Central Contractor Registration (CCR) database, and complete the Small Business Supplemental Page within CCR. As a government-wide single point of vendor registration, CCR is a key aspect of streamlining and integrating electronic commerce into the Federal procurement process. Effective October 1, 2003, Federal Acquisition Regulation require contractors to register in CCR prior to award of any contract, basic agreement, basic ordering agreement, or blanket purchase agreement. It’s easy to register in CCR. Just go to www.ccr.gov and select the “Start a New Registration” button.

There are hundreds of millions of federal government dollars awarded each year to qualified minority businesses. These funds are provided as 100% set aside contracts to small disadvantaged businesses through the Small Business Administration 8(a) Business Development Program without public notice or competition. You are entitled to receive 8(a) funding from the U.S. government if you are a qualified minority business owner with American citizenship.

Applying to the 8(a) Program

You can apply to the 8(a) Program by contacting any SBA district office. For more information or questions, call the Division of Program Certification & Eligibility at (202) 205-6417

HUBZones

The HUBZone Program stimulates economic development and creates jobs in urban and rural communities by providing Federal contracting preferences to small businesses. These preferences go to small businesses that obtain HUBZone (Historically Underutilized Business Zone) certification in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. [A principal office can be different from a company headquarters, as explained later in this document.] The program resulted from provisions contained in the Small Business Reauthorization Act of 1997.

Whats the easiest way to find the location of a HUBZone in my area?

Simply log onto the web at http://www.sba.gov/hubzone and select the option Are You in a HUBZone? You can search the system using several designations, including a specific address, a county or a full state.

How does a firm qualify for this program?

Requirements: To qualify for the program, a business (except tribally-owned concerns) must meet the following criteria:

    •     It must be a small business by SBA standards;
    •    It must owned and controlled at least 51% by U.S. citizens, or a CommunityDevelopment Corporation, or an            agricultural cooperative or an Indian tribe;
    •     Its principal office must be located within a 'Historically Underutilized Business Zone,' which includes                       lands considered Indian Country and military facilities closed by the Base Realignment and Closure Act; and
    •    At least 35% of its employees must reside in a HUBZone.

Existing businesses that choose to move to qualified areas are eligible. To fulfill the requirement that 35% of a HUBZone firms employees reside in the HUBZone, employees must live in a primary residence within that area for at least 180 days or be a currently registered voter in that area.

Three types of HUBZone Prime Contract Benefits

Competitive: HUBZone contracts can be awarded if the contracting officer has a reasonable expectation that at least two qualified HUBZone small business concerns (SBCs) will submit offers and that the contract will be awarded at a fair market price.

Sole-source: HUBZone contracts can be awarded if the contracting officer determines that:
    •     one qualified HUBZone SBC is responsible to perform the contract,
    •     two or more qualified HUBZone SBCs are not likely to submit offers and the anticipated award price of the            proposed contract, including options, will not exceed $5,000,000 for a requirement within the North                            American Industry Classification System (NAICS) code for manufacturing or $3,000,000 for a requirement                within all other NAICS codes

Full and open: Competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business.

Other Benefits
Through Federal prime contractors, subcontracting opportunities.
Through SBA Office of Surety Guarantees (202-205-6540), higher surety bond guarantees.

Locating Eligible Areas
Computer mapping software available on SBAs website allows firms to search a database to determine whether they are located in a qualified HUBZone. The system allows searches by address, county, or town and displays metropolitan areas, Indian reservations, and counties that qualify by income, unemployment rate, or both.

Access the site at http://www.sba.gov/hubzone. Select the option 'Are You In a HUBZone?'

Applying to the Program
To apply, companies use the electronic application on the HUBZone web site listed above.

Participating Federal Agencies
The program applies to all federal departments and agencies and the government-wide prime contacting goal is 3%.

Identifying HUBZone firms
To search for eligible HUBZone businesses, contracting officers can use the Central Contractor Registration web site at: http://www.ccr.gov. Use the Dynamic Small Business Search feature located there.

Background
The HUBZone program was enacted into law as part of the Small Business Reauthorization Act of 1997. The SBA regulates and implements the program, determines which businesses are eligible to receive HUBZone contracts, maintains a listing of qualified HUBZone small businesses federal agencies can use to locate vendors, and adjudicates protests of eligibility to receive HUBZone contracts.

For additional information:
U.S. Small Business Administration
HUBZone Program
409 Third Street, SW, 8th Floor
Washington, D.C. 20416
Phone: 202-205-8885 - Fax: 202-205-7167

8(A) SELF-CERTIFICATION
KIT INCLUDES:

• Complete set of government forms
• 8(a) Certification guide book

Also Includes:
• Writing & Winning Government Contracts

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