Top of the Class: 8(a) Early Graduation

The SBA’s 8(a) Business Development Program is the crème de la crème of federal government contracting and there is a high bar to entry for admission. Among other things, individuals that are not a member of one of the recognized groups that is automatically presumed to be socially disadvantaged must prove they were socially disadvantaged throughout their life through what is called a social disadvantage narrative. Beyond that, there are a number of other qualifications, such as being economically disadvantaged, a business’s potential for success, and evidence of good character that must also be met. 13 C.F.R. § 124.101. The process is difficult, and once an individual is admitted, they no doubt want to make the most of it.  

Oftentimes, small businesses that participate in the 8(a) SBA’s Business Development Program remain in the Program for the full 9 years that the SBA allows, which culminates in the small business “graduating” from the program. 13 C.F.R. § 124.302. Sometimes, the business grows so successfully that it no longer meets the qualifications of being small, and thus is required to graduate early from the 8(a) Program. So how exactly does that happen? Read on to find out.  

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Back to Basics: 8(a) Program Eligibility

In a recent post, we discussed the basics of SBA’s 8(a) Business Development Program, including general information, benefits, program terms, and how to apply. This follow-up post focuses on the basics of SBA’s 8(a) eligibility requirements, discussing those in greater detail.

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SBA Suggests Three Pages or Fewer for Social Disadvantage Narratives–But Really?

SBA guidance on Certify.SBA.Gov suggests that an 8(a) Program applicant’s social disadvantage narrative should be “three pages or less.” While we are definitely in the habit of recommending small business contractors to follow SBA’s guidance most of the time, we simply cannot climb aboard the “three-page” ship. In fact, we have significant concerns that submitting a one to three page narrative could potential “sink” your 8(a) application (at a minimum, requiring you to make extensive and time-consuming revisions later on).

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YouTube Tuesday: Writing Your 8(a) Application’s Social Disadvantage Narrative- What the SBA is Looking For

One of the trickiest requirements for admission into the SBA’s 8(a) program is demonstrating social disadvantage. While some groups are presumed socially disadvantaged (as discussed here), social disadvantage can also be demonstrated based on other characteristics not specifically included in the SBA’s regulations. For those characteristics, applicants must submit a “social disadvantage narrative.”

In this video, I provide you the tricks of the trade you’ll need to write a successful narrative:

For assistance drafting your social disadvantage narrative, reach out to us here!

8(a) Social Disadvantage Narratives: What SBA is Looking For

Writing a social disadvantage narrative for application to SBA’s 8(a) Business Development Program can be tricky. While SBA’s regulations can guide your pen, they are not the only source of helpful information out there.

Let’s take a look at some SBA guidance and recommendations based on SBA’s actual decisions that may increase your chances for success.

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SBA Denies 8(a) Status Based on Applicant’s Ability to Successfully Overcome Gender-Based Discrimination in Her Field

OHA recently affirmed the 8(a) status denial of a 100% woman-owned small business performing in the historically male-dominated renewable energy field. The applicant—who SBA called an “advocate” and “mentor” to women in the industry—detailed specific instances of gender-based-discrimination that plagued her education, employment, and career.

But SBA was unmoved, instead focusing its analysis on the applicant’s triumph over these obstacles—apparently an indication that she was not socially disadvantaged in the first place. Unfortunately, this perplexing holding does fall in line with many past SBA denials of women-owned companies for 8(a) status.

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5 Things You Should Know: 8(a) Program Eligibility

Editor’s Note: You can find our updated post on 8(a) Program Eligibility here.

In a recent post, we discussed the basics about SBA’s 8(a) Business Development Program. This follow-up posts discusses 8(a) eligibility requirements in greater detail.

To qualify for the 8(a) Program, a firm must be a small business that is unconditionally owned and controlled by one or more socially- and economically-disadvantaged individuals who are of good character and citizens of the United States and that demonstrates a potential for success.

What does this really mean? Here are five things you should know about 8(a) Program eligibility.

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