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Catalog of Federal Domestic Assistance

Program Descriptions

59.006:  8(a) Business Development

Popular Name:  Section 8(a) Program

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.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

59.006 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. 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 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.

59.006 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  None. This program is excluded from coverage under E.O. 12372.

Application Procedure:  Written application to SBA offices listed in Appendix IV of the Catalog, Division of Program Certification and Eligibility. Application forms, detailed instructions, and if necessary, assistance in completing application is available at SBA District offices and on SBA's home page at 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:  Applications for program participation are accepted on an ongoing basis.

Range of Approval/Disapproval Time:  About 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 disadvantaged 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:  Not applicable.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  Not applicable.

59.006 RELATED PROGRAMS:

• 11.800 Basic Minority Business Development Centers;
• 59.007 Management and Technical Assistance for Socially and Economically Disadvantaged Businesses;
• 59.009 Procurement Assistance to Small Businesses;
• 59.011 Small Business Investment Companies.

59.006 PROGRAM ACCOMPLISHMENTS:

59.006 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  SMALL BUSINESS ADMINISTRATION

Type of Assistance:  Provision of Specialized Services.

Obligations:  (Salaries and Expenses) FY 99 $4,583,000; FY 00 est $4,077,000; and FY 01 est $4,563,000.

Budget Account Number:  73-0100-0-1-376.

Authorization:  Small Business Act of 1953, as amended, Section 8(a), 15 U.S.C. 634(b)(6), 15 U.S.C. 636(j), 15 U.S.C. 637(a) and (d); Public Laws 95-507, 99-661, 100-656, and 101-37.

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

59.006 INFO CONTACTS:

Regional or Local Office:  Initial contact should be made with the field offices listed in Appendix IV of the Catalog.

Headquarters Office:  Associate Administrator for 8(a) Business Development, Small Business Administration, 409 Third Street, SW., Washington, DC 20416. Phone: (202) 205-6421. Use the same number for FTS.

(See Appendix IV for more contact info.)

59.006 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  Not applicable.

Length and Time Phasing of Assistance:  Maximum of 9 years.

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.

59.006 POST ASSISTANCE REQUIREMENTS:

Reports:  Annual business financial statements; annual business plan update; annual personal financial statements for each disadvantaged owner; annual certification of continuing compliance with program eligibility criteria; records of all payments, compensation and distributions made by the participant firm to each of its owners or to any person or entity affiliated with such owners; and other reports deemed necessary by SBA.

Audits:  Program participation audits as needed to evaluate progress. Contract audits as and when required by Federal Acquisition Regulations.

Records:  Standard business/accounting records.