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1 1 (July 26, 2023)

handle is hein.crs/govemif0001 and id is 1 raw text is: I nf oressbonaI Re earch Serv ce rnuna ih iea~ i'ie d bat sit 1914 0 July 26, 2023 The SBA's 8(a) Business Development Program Background Through the 8(a) Business Development Program, Congress aims to help small socially and economically disadvantaged business owners overcome barriers to participating in federal contracting. The program, established under Section 8(a) of the Small Business Act in 1978, gives explicit statutory authority for program activities previously implemented through regulations. For eligible businesses, the 8(a) program creates federal contracting preferences such as contract set-asides and sole- source contracts. Set-asides limit contract competition to businesses in the 8(a) program. Sole-source awards are made to selected 8(a) program participants without competition. Agency purchasing officials may choose to award contracts under this program in order to reach annual goals for contracting with small disadvantaged businesses (see CRS Insight IN12018, Federal Small Business Contracting Goals). Under the authority of the Small Business Act, the SBA accepts procurements from other federal agencies and may then award contracts to program participants through either a set-aside or sole-source award, typically depending on the value of the contract award. In addition to contracting preferences, the program provides participants with business development support, including mentorship, training, and counseling. These services are intended to enhance participants' competitiveness and their long-term viability as businesses. Statutory authority for the program is contained in Sections 7(j), 8(a), and 8(d) of the Small Business Act. This In Focus provides an overview of the program's requirements as well as issues for Congress. Eligibidity Requirements Businesses that meet eligibility criteria and obtain 8(a) program certification may participate in the program for nine years, at which point they are no longer eligible for contracting preferences. Eligible firms must meet all of the following criteria, described at 13 C.F.R. §124: 1. Are small in size, according to size standards established by the SBA; 2. Are of good character, which relates to an applicant's criminal conduct, their incarceration, parole, or probation pursuant to crimes involving business integrity, their violations of any SBA regulations, and their submission of false information to the SBA; 3. Demonstrate potential for success, which a firm can generally do by operating and receiving contracts in the private or public sectors, in its primary industry, for at least two full years immediately prior to applying for the program (although the SBA may waive this two-year requirement under certain conditions); 4. Are at least 51% unconditionally and directly owned by one or more socially

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