8(a) Business Development (59.006)

Program

59.006 8(a) Business Development

Federal Agency

Agency: Small Business Administration

Authorization

Small Business Act of 1953, Public Law 100-656.

Program Number

59.006

Last Known Status

Active

Objectives

To foster business ownership by individuals who are both socially and economically disadvantaged; and to promote the competitive viability of such firms by providing business development assistance including, but not limited to, management and technical assistance, access to capital and other forms of financial assistance, business training and counseling, and access to sole source and limited competition Federal contract opportunities, to help the firms to achieve competitive viability.

Types of Assistance

PROVISION OF SPECIALIZED SERVICES

Uses and Use Restrictions

This program utilizes authority provided to SBA under Section 7(j) and 8(a) of the Small Business Act to enter into procurement contracts with other Federal agencies and to subcontract the performance of these contracts to eligible program participants, and to provide access to capital and other forms of financial assistance, and to provide business training and counseling.

Eligibility Requirements

Applicant Eligibility

Firms applying for 8(a) program participation must meet certain requirements which include, but are not limited to: (a) Status as a small business; (b) at least 51 percent unconditional ownership, control and management of the business by an American citizen(s) determined by SBA to be socially and economically disadvantaged, or by an economically disadvantaged Indian Tribe, Alaska Native Corporation, or Native Hawaiian Organization; and (c) demonstrated potential for success; and (d) possess good character. Absent evidence to the contrary, the following individuals are presumed to be socially disadvantaged: African Americans, Hispanic Americans, Native Americans, Asian Pacific Americans and Subcontinent Asian Americans. Individuals who are not members of the named groups may establish their social disadvantage on the basis of a preponderance of evidence of personal disadvantage stemming from color, national origin, gender, physical handicap, long- term residence in an environment isolated from the American society, or other similar cause beyond the individual's control. Economic disadvantage must be demonstrated on a case-by-case basis.

Beneficiary Eligibility

Socially and economically disadvantaged individuals and small businesses owned and operated by such individuals; economically disadvantaged Indian tribes including Alaskan Native Corporations and economically disadvantaged Native Hawaiian organizations.

Credentials/Documentation

Documentation to establish that all program eligibility criteria are met. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Preapplication coordination is required. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Electronic application to SBA offices through SBA's webpage at www.sba.gov. Detailed instructions, and if necessary, assistance in completing application is available at SBA District offices and on SBA's home page at http://www.sba.gov.

Award Procedure

Applicant is notified of program participation approval or decline by a letter from the SBA headquarters office. Broad range of business development assistance, including procurement, and access to capital and other forms of financial assistance and business training and counseling is provided to approved program participants.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time

Approximately 90 days.

Appeals

Within 45 days of the date of decline letter, applicant has right to request that the decision be reconsidered. For applications declined solely on the basis of negative finding with regard to social disadvantage, economic disadvantage, ownership or control of business by socially or economically disadvantaged individuals, the applicant within 45 days of the date of the decline letter or reaffirmation of decline, has a right to appeal the decision to the SBA's Office of Hearing and Appeals.

Renewals

Additional information available on SBA's website at sba.gov.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

This program has no matching requirements.

This program does not have MOE requirements.

Length and Time Phasing of Assistance

Maximum of 9 years. See the following for information on how assistance is awarded/released: Additional information available on SBA's website at sba.gov.

Post Assistance Requirements

Reports

Additional information available on SBA's website at sba.gov. Additional information available on SBA's website at sba.gov. Additional information available on SBA's website at sba.gov. Additional information available on SBA's website at sba.gov. Additional information available on SBA's website at sba.gov.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Program participation audits as needed to evaluate progress. Contract audits as and when required by Federal Acquisition Regulations.

Records

Standard business/accounting records.

Program Accomplishments

Fiscal Year 2008: See the FY 2010 Performance and Accountability Report on SBA's website at sba.gov. Fiscal Year 2009: See the FY 2010 Performance and Accountability Report on SBA's website at sba.gov. Fiscal Year 2010: See the FY 2010 Performance and Accountability Report on SBA's website at sba.gov.

Financial Information

Account Identification

73-0100-0-1-376.

Obligations

(Salaries) FY 08 $51,795,000; FY 09 est $54,921,000; FY 10 est $64,996,000

Range and Average of Financial Assistance

Additional information available on SBA's website at sba.gov.

Regulations, Guidelines and Literature

SBA Rules and Regulations, 13 CFR Section 124, SOP 80-05-02.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

See Regional Agency Offices. Initial contact should be made with the field offices listed in Appendix IV of the Catalog.

Headquarters Office

David Lippold 409 3rd. Street, SW, Suite 6000, Washington, District of Columbia 20416 Email: david.lippold@sba.gov Phone: 202-205-6569

Web Site Address

http://www.sba.gov.

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not Applicable.