Business & Financial Solutions
Business & Financial Solutions
TAX HELP SERVICE AND PREPARATION
(855) 557-2222
Get Started Now!
  • twitter
  • facebook
  • linkedin
  • Home
  • What We Do
    • Business Start-ups
    • Accounting and Bookkeeping Services
    • Tax Services
    • Tax Help
    • Specialized Tax Solutions
    • Business Management
    • Specialized Accounting Services
    • Non Profit Organizations
    • Offer In Compromise
    • Professional Content & Business Plan Writers
    • Construction Accounting Firm
    • Accounting & Bookkeeping for Restaurants
    • Bookkeeping Services Assisted Living
    • Accountants For Smart Real Estate Professionals
    • Bookkeeping Services for Law Firms
  • About Us
  • Locations
    • Frederick Maryland Office
      • 10 Things Every Frederick Business Owner Should Know
      • 12 Tax Tips For People Living In Frederick Maryland
    • Rockville Maryland Office
      • Rockville Maryland Name One Of The Best Places To Live
      • Top 10 Things To Do In Rockville Maryland
    • McLean Virginia Office
      • 10 Things Every Business Owner Should Know About McLean Va
      • What is Tysons Corner Mall, How Can It Help Your Business
    • Plano Texas Office
      • History Of Plano Texas, Top 5 Things To Do In Plano Texas
  • Contact Us
    • Careers
  • FAQ
    • How To Track The Status Of Your IRS Refund – Where Is My Refund?
    • Ask A CPA, Top Ten Questions People Ask An Accountant
  • Blog
  • Client Portal
  • Facebook Review

What Is SBA 8a Certification, What Are the Benefits Of It and Costs

A Brief Explanation Of The 8(a) Business Program

If you are like me you have heard many things regarding programs offered by the SBA. Trust me, I have been off and running many times in hot pursuit of the latest magical program for small business owners.

The result many times was the same. I found that the talk of these programs was not exactly the same as the reality of the SBA’s offerings. But the good news is I have found that there are many excellent program offerings by SBA to empower business owners.

One of my personal favorites is the SBA’s 8(a)Business Development Program.

What is The SBA 8(a) Business Development Program

I thought you might ask. The program is designed to provide support for entrepreneurs who are socially and economically disadvantaged in their efforts to fight for their slice of the American dream.

The program offers this support in numerous ways. Among them are: Mentoring, Business counseling, training, financial assistance, and the list goes on.

The 8(a) program is a nine-year program broken into two parts. The first four years focuses on business development and is followed by a five year transition period.

Program Benefits

Participants in the 8(a) program are eligible to receive sole-source contracts. The limit for businesses providing goods and services is $4 million. For business participants in the manufacturing sector, this limit is $6 million.

8(a) firms are also allowed to collaborate in bidding on contracts. This improves the ability of these firms to acquire and perform larger prime contracts. An added benefit of this provision is participants are better protected against contract bundling.

The 8(a) program also has a Mentor-Protege Program that affords starting companies the opportunity to work with and learn from more experienced 8(a) businesses.

SBA 8(a) Business Development Program Goals And Requirements

Okay. Okay. We all knew there would be some fine print somewhere so let’s take a look.

The objective is to provide 8(a) participants with the tools to successfully compete in a competitive business environment. In pursuit of this goal, the 8(a) program has established some requirements.

  • Participants must maintain a balance between there commercial and government business
  • The monetary limit on sole-source contracts that a participant can be granted is $100 million or 5 times the company’s NAICS code value.

To assure that participants are on the right track the SBA monitors and assesses the performance of 8(a) firms through:

  • Annual Reviews
  • Business Planning
  • Systematic Evaluations

Eligibility Requirements

To qualify for the SBA 8(a) Business Development Program a small business must be under the control of an individual that satisfy the SBA definition of disadvantaged persons.

The Small Business Act recognizes certain members of our society as socially disadvantaged: These individuals are usually among in a group that is generally classified as an ethnic minority in our country.

Any individual not part of these groups can become eligible for the 8(a) program if he or she can show through a “preponderance of evidence” that he or she indeed is socially disadvantaged.

This disadvantage can be due to racial or ethnic differences, physical handicap, gender or long-term residence in environments traditionally disallowed access to mainstream American society.

Additionally, to meet the burden of classification as economically disadvantaged an individual must submit a written account along with financial documentation pertaining to their individual financial situation.

In general, successful applicants also meet these requirements:

  • The business must be eligible for small business classification.
  • Businesses must demonstrate a high likelihood of success. This requirement is often times met by being 2 years old or older in business.
  • Businesses must be owned and controlled by disadvantaged individuals who are United States citizens and have displayed good character.

And now if like myself, there is only one question left for you that matters.

How To Apply

Prior to beginning the application process, firms are encouraged to participate in their online course. This can be assessed by accessing the 8(a) Business Suitability Tool.

The course consists of an 8(a) program detailed explanation and an eligibility self-assessment. The test is a simple yes/no questionnaire to help potential participants to evaluate their firm’s basic requirements for the program.

Once ready to submit your application to the 8(a) business program electronic submission is suggested. But if choosing to use paper you can contact your SBA district office to request a hard copy of this application.

If you are looking for SBA 8a Certification help or a CPA based in Frederick MD, contact us today.

Office Locations In Maryland

5100 Buckeystown Pike Ste 250, Frederick, MD 21704

Leave A Google Review
17 W Jefferson St Ste 007, Rockville, MD 20850

Leave A Google Review

Office Location In Virginia

7918 Jones Branch Drive, Ste 405, Tysons VA 22102

Leave A Google Review

Office Location In Texas

101 E. Park Blvd, Suite 600 Plano TX 75074

About BFS

Visit us in McLean Virginia, Frederick or Rockville, Maryland (Washington DC Metro Area)or Plano Texas

Phone toll free: (855) 557-2222
Fax: (240) 297-1054
E-mail: info@bfswebsite.com

Business & Financial Solutions is a tax and accounting CPA firm. Our offices are located in Fairfax County, VA, Collin County and Denton County, TX, Montgomery and Frederick Counties, MD. Our company is highly motivated in helping individuals and companies (private and non-profit) become successful in start-ups. BFS offers assistance with ongoing small to mid-size business management, consulting, accounting and a variety of tax services.

Maryland, Virginia, Washington DC, Texas
back up
© Copyright 2023 Business & Financial Solutions