The SBA’s Office of Government Contracting and Business Development, the office that handles the 8(a) Business Development Program applications, has just confirmed that SBA has “temporarily paused” the submission of new 8(a) Program applications in light of the recent decision by the federal district court of the Eastern District of Tennessee.
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Initial Challenge to 8(a) Presumption of Social Disadvantage for Certain Minority Groups Succeeds: What This Means for Now
On July 19, 2023, the federal district court of the Eastern District of Tennessee issued a decision regarding a case involving the rebuttable presumption of social disadvantage in place under the 8(a) Business Development Program. Ultima Servs. Corp. v. U.S. Dep’t of Agric., 220CV00041DCLCCRW, 2023 WL 4633481, at *1 (E.D. Tenn. July 19, 2023). This decision found that this presumption is unconstitutional as it violates the right to equal protection. This, understandably, has caused a great deal of confusion and concern for current and potential 8(a) Program participants. In this post, we will not be providing our opinion on the correctness of the court’s decision (or analyze it from a policy perspective), as we will leave that to attorneys who specialize in constitutional law. Instead, we will go over the decision, what it means, and what it could affect down the road.
Continue readingTop 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.
Continue readingBack 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.
Continue readingSBA 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).
Continue readingYouTube 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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