The SBS 8(a) program is designed to allow small businesses that are owned by individuals who are considered socially and economically disadvantaged easier access to government contracts that could provide more revenue to their business. In order to qualify for the program, you have to meet specific criteria as well as submit specific information on your application for the program.
Thing #1: Need a Business Profile
First, in order to start the application progress, you need to register with the System for Award Management (SAM), which is run by the General Services Administration. You don't have to pay anything for this service; it is just a system to keep track of all the businesses that are registered for interactions with the federal government.
Thing #2: Need Right Codes & Numbers
Second, you need a few different codes and numbers. To start with, you need an employer identification number if you don't already have one.
Next, register for a Data Universal Numbering System (DUNS) number. It is a nine-digit number that you can be associated with your business throughout its lifecycle and can become associated with your business's credit information. You are required to have this number in order to do business with the U.S. government.
You also need a North American industrial Classification System (NAICS) code. This code is used to identify the sector that your business operates in and the type of business that you do. This code helps the government identify what your business does.
Thing #3: Need to Be Operating for a While
Next, the SBA 8(a) program is not for new businesses. This program is designed to help your business get a government contract, and the government wants to work with businesses that have been open a few years and can show a track record of success as a business.
Your business can't have any debt in order to be a part of this program, and you need to be able to demonstrate that you can handle the financial side of running a business and have a track record of success. This is a program you should consider applying for after your business has been running for two to five years.
Thing #4: Need to Have an Active Owner
With an SBA 8(a) application, the owner has to be involved in the business. The owner of the business cannot just be a shareholder or the majority owner. Owners need to be actively involved in both daily operations and in making long-term decisions for the business.
Being approved for the SBA 8(a) business program can allow your small business access to government contracts that can help your business grow, which is why you should get assistance with the application process to ensure your application is approved the very first time you apply.
For more information about this application or SBA 8(a) application help, contact a local consultant.Share
2 October 2020
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