U.S. Small Business Administration: The "SBA's 8(a) BD Program" Part 1

I have found this FAQ's in the "U.S. Small Business Administration" site and i see that they will be helpful for Small Business members. So, let's start the First part of it: 1. What is the 8(a) Business Development (BD) Program?

The SBA's 8(a) BD Program, named for a section of the Small Business Act, is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.

2. How do I apply to the 8(a) BD program?

Contacting the local SBA district office serving your area is the first step. An SBA representative will answer general questions over the telephone. Some SBA district offices may also have 8(a) orientation workshops to provide additional information regarding the eligibility requirements and to review various SBA forms.

3. What are the basic requirements an 8(a) applicant firm must meet?

The applicant firm
1. must be a small business,
2. must 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, and
3. must demonstrate potential for success.

4. Will having a specific business consultant prepare my 8(a) application increase my chances of being approved?

You do not need to pay anyone to prepare your 8(a) application. SBA designed the application forms so the applicant can complete the application. However, a consultant can assist in completing the application. Please be advised that no one can guarantee that an application for 8(a) program participation will be approved. The application process is intended to assure that each applicant receives a fair review. Any irregularities in the application review process should be immediately referred to the SBA Office of Inspector General.

5. What is SBA's definition of a small business concern?

SBA defines a small business concern as one that is independently owned and operated, is organized for profit, and is not dominant in its field. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period. Examples of SBA general size standards include the following:
1. Manufacturing: Maximum number of employees may range from 500 to 1500, depending on the type of product manufactured;
2. Wholesaling: Maximum number of employees may range from 100 to 500 depending on the particular product being provided;
3. Services: Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided;
4. Retailing: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being provided;
5. General and Heavy Construction: General construction annual receipts may not exceed $13.5 to $17 million, depending on the type of construction;
6. Special Trade Construction: Annual receipts may not exceed $7 million; and
7. Agriculture: Annual receipts may not exceed $0.5 to $9.0 million, depending on the agricultural product.

   Use SBA's quick tool to see if you qualify as a small business.

6. What is a Standard Industrial Classification (SIC) code?

A SIC code is the Standard Industrial Classification number listed in the Standard Industrial Classification Manual which is published by the Office of Management and Budget. The SIC Manual is available at your local library or on the Internet site http://www.osha.gov/oshstats. SIC codes are used by the Federal Government to identify and classify specific categories of business activity that represent the primary line of business of a firm. SBA size standards are based on SIC codes.

Use SBA's quick tool to find your SIC or NAICs codes.

7. Who are socially disadvantaged individuals?

Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group. Social disadvantage must stem from circumstances beyond their control. In the absence of evidence to the contrary, individuals who are members of the following designated groups are presumed to be socially disadvantaged:
1. Black Americans
2. Hispanic Americans
3. Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians)
4. Asian Pacific Americans (persons with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands [Republic of Palau], Commonwealth of the Northern Mariana Islands, Laos, Cambodia [Kampuchea], Taiwan; Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, Federated States of Micronesia, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru; Subcontinent Asian Americans (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal), and
5. Members of other groups designated by the SBA.

8. Can an individual who is not a member of a designated group claim social disadvantage?

Yes. However, an individual who is not a member of a designated group must establish social disadvantage on the basis of a "preponderance of evidence." Generally, preponderance is evidence of quality and quantity which leads the decision maker to conclude, objectively, that the existence or truth of the fact(s) asserted is more probable than not.

9. What evidence must an individual who is not a designated group member provide to show social disadvantage?

At least one objective distinguishing feature that has contributed to social disadvantage, such as race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society, or other similar causes not common to individuals who are not socially disadvantaged:
1. Personal experiences of social disadvantage stemming from the objective distinguishing feature or features set forth in the preceding paragraph. The experiences must have been in American society, not in other countries, and must have been substantial and chronic.
2. Negative impact on entry into or advancement in the business world because of the disadvantage. SBA considers any relevant evidence in assessing this element. In every case, however, SBA considers education, employment and business history, where applicable, to see if the totality of circumstances shows disadvantage in entering or advancing in the business world.

10. What types of evidence can be used to assist in meeting the burden of proof?

Court or administrative findings of discrimination. Statements made under oath to an investigator or in a court or administrative proceeding. Affidavits or statements sworn under oath by an individual owner which have specific recurrent incidents of discrimination or a pattern of discrimination over a significant period of time. Applicant statements alone, without supporting or corroborating evidence will be given less weight than if corroborated. Sworn affidavits or statements from independent third parties, who do not have an interest in or close relationship to the owner, corroborating or supporting assertions made by the owner Statements by relatives or friends of the owner will have less weight than statements by independent third parties. Documentary evidence which corroborates or supports assertions made by an owner regarding specific incidents or a pattern of discrimination. Such documentation includes these items:
1. Personnel records
2. Payroll records
3. Rejection letters on job applications
4. Denials of credit application Documents relating to rejected contract offers, i.e., bid abstracts, solicitations, etc.
5. Contemporaneous records memorializing meetings, conversations, negotiations, telephone calls, etc.
6. Documents setting forth company policy(ies) which are alleged to be discriminatory.
7. Evidence which tends to show generalized patterns of discrimination against a non-designated group or statistical data showing that businesses owned by a specific non-designated group are disproportionately underrepresented in a particular industry may be used to augment an individual's case. Statistics and generalized patterns are not sufficient by themselves to establish a case of individual social disadvantage. However, an individual's statement of personal experiences in combination with the generalized evidence may be sufficient to demonstrate social disadvantage.

the source is: http://app1.sba.gov/faqs/faqindex.cfm?areaID=17