The 8 (a) Business Development program is basically a business assistance program for small and disadvantaged businesses. This program offers tremendous assistance to firms that are controlled and owned by at least 51% of the individuals from economically disadvantaged backgrounds.
Focus of 8(a) program
The 8(a) is seen as an important tool that helps entrepreneurs with social and economic disadvantages to seek access to the economic mainstream of the US society. It is with the help of this special program that aspiring entrepreneurs are able to gain a positive foothold in government contracts. The major focus of the program is to provide business development support in major areas such as mentoring, business counseling, procurement assistance, financial assistance, training, and other management and technical assistance.
Benefits of the program
Small businesses can participate in the 8 (a) business development program in two phases over a period of nine years. The first four years are referred to as the developmental stage, and the next five years are referred to as the transition stage. There are a number of benefits for businesses participating in the 8 (a) business development program. They are as follows.
- Participating businesses are eligible to receive sole source contracts for up to $4 million for goods and services. They will also be getting $6.5 million for manufacturing.
- It also helps all of the 8(a) firms to build their business know-how, and it also encourages them to participate in competitive acquisitions.
- By enrolling in the program, the 8(a) firms will be able to form both teams and joint ventures in order to bid on the business contracts.
- It also improves the ability of the 8 (a) firms to perform prime contracts on a larger scale and avoid the hurdles of contract bundling. Contract bundling is the concept of combining two or more contracts into one large contract.
- 8(a) companies will be able to learn the experiences of other experienced 8(a) businesses.
How does the 8(a) program turbocharge the business development programs?
For start-ups and for those who are new to entrepreneurship, the journey of navigating through a small business could be a challenging task. But for those businesses who are enrolled in the 8 (a) program, a plethora of opportunities opens up. The SBA governs the 8(a) program, and it aims to empower small businesses that are run and owned by socially and economically disadvantaged individuals.
The program enables businesses to maintain an appropriate balance between government and commercial business. Businesses will be able to limit the total dollar value of sole-source contracts, that any individual participant can receive while they are in the program. To ensure that the 8 (a) programs are on the right track to accomplishing their business goals, the SBA district offices will monitor and measure their progress. They monitor their progress through systematic evaluations, annual reviews, and business planning.
Apart from these benefits, the participants of the 8(a) program can take advantage of the specialized business training, marketing assistance, and counseling offered by the resource partners and the SBA itself. They will offer assistance in obtaining access to surplus Government supplies and property as well as SBA loans and bonding assistance for being a part of the program.
Businesses under the 8(a) program could effectively utilize the MySetAside web portal. MySetAside (MSA) assists in easily accessing and navigating complete federal contract information, helping secure federal contract opportunities. Register with MySetAside today to expand your business widely.