8(a) firm

Definition

An 8(a) firm refers to a business that is certified as a participant in the U.S. Small Business Administration’s 8(a) business development program. 

What is a 8(a) firm?

To qualify as an 8(a) firm, a business must meet specific eligibility criteria established by the SBA. This includes being a small business based on SBA size standards, being at least 51% owned and controlled by one or more socially and economically disadvantaged individuals.

Once certified, 8(a) firms gain access to a wide range of business development resources and support services provided by the SBA. These include training, counseling, technical assistance, and access to capital and contracting opportunities. 

One of the primary benefits of being an 8(a) firm is the opportunity to participate in federal contracting set-aside programs. Federal agencies are required to set aside a certain percentage of contracts for small disadvantaged businesses, including 8(a) firms, to promote diversity and inclusion in government contracting.

Participation in the 8(a) program is limited to a maximum of nine years, after which firms “graduate” from the program. Upon graduation, 8(a) firms are no longer eligible for the program’s benefits, but they may continue to pursue federal contracting opportunities as small businesses.

If you want to learn more about the SBA 8(a) program, read our comprehensive guide.

Example of a 8(a) firm

An example of an 8(a) firm is a technology consulting company owned and operated by a socially and economically disadvantaged individual. After receiving certification from the SBA as an 8(a) participant, the firm gains access to specialized training, mentoring, and contracting opportunities. It successfully secures a contract with a federal agency to provide IT services, leveraging its 8(a) status to compete for and win the contract. This contract allows the firm to grow its business, expand its capabilities, and create employment opportunities for disadvantaged individuals within its community.