Small business

Looking to start a small business, did you know there were many types of small business that might be of interest to you.

Socially disadvantaged individuals are individuals subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities. The social disadvantage must stem from circumstances beyond their control. The following are presumed by law to be socially disadvantaged: African Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, Subcontinent Asian Americans,and others as defined by the SBA on a case-by-case basis.

Small Disadvantaged Business. A business is determined to be economically disadvantaged when: It is owned by one or more socially and economically disadvantaged individuals and the net worth of each individual upon whom the certification is based does not exceed $750,000 .
Section 8(a) Firm Section 8(a) of the Small Business Act establishes SBA's business development program for socially and economically disadvantaged small businesses.

The purpose of the Section 8(a) program is to:

Assist SDBs to compete in the American economy through business development Allow SDBs to receive contracts on a non-competitive basis (subject to established thresholds)

Permit Federal agencies to restrict competition, allowing only certified 8(a) firms to compete

Allow SDBs to receive management and technical assistance under Section 7(j) of the Small Business Act

In short , 8(a) permits contracting without providing full and open competition 8(a) firms are always SDBs, but SDBs are not necessarily 8(a) firms. SDBs can apply for the Section 8(a) Program if they meet the criteria.

A Section 8(a) firm must:
Be a small business
Be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States Demonstrate potential for success

Be Note: 8(a) certification does not guarantee receipt of contract awards.')"certified by the SBA

The Section 8(a) program is administered by the SBA, which certifies and monitors all firms in the program. Eligibility is for a nine-year program that includes a First four years Emphasis on sole source contracts Goals Strengthen financial and managerial skills Improve access to markets
')"developmental stage followed by a Last five yearsEmphasis on competitionGoals Overcome remaining elements of economic disadvantage Prepare for graduation from program Steadily increase work on non-governmental marketplace ')"transitional stage.

For more information visit www.sba.gov.

Reference : www.sba.gov/