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Major Problems with SBA's Section 8(a) Program for Disadvantaged Small Businesses

Author: United States. Congress. House. Committee on Government Operations. Commerce, Consumer, and Monetary Affairs Subcommittee
Publisher:
ISBN:
Category : Federal aid to minority business enterprises
Languages : en
Pages : 948

Book Description

Major Problems with SBA's Section 8(a) Program for Disadvantaged Small Businesses

Book Description

Major Problems with SBA's Section 8(a) Program for Disadvantaged Small Businesses

Book Description

Major Problems with SBA's Section 8(a) Program for Disadvantaged Small Businesses

Book Description

The 8(a) Program for Small Businesses Owned and Controlled by the Socially and Economically Disadvantaged

Author: Congressional Research Congressional Research Service
Publisher: CreateSpace
ISBN: 9781505321692
Category :
Languages : en
Pages : 34

Book Description
Commonly known as the "8(a) Program," the Minority Small Business and Capital Ownership Development Program is one of several federal contracting programs for small businesses. The 8(a) Program provides participating small businesses with training, technical assistance, and contracting opportunities in the form of set-asides and sole-source awards. A "set-aside" is an acquisition in which only certain contractors may compete, while a sole-source award is a contract awarded, or proposed for award, without competition. In FY2013, the federal government spent $14 billion on contracts and subcontracts with 8(a) firms. Other programs provide similar assistance to other types of small businesses (e.g., women-owned, HUBZone). Eligibility for the 8(a) Program is generally limited to small businesses "unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States" that demonstrate "potential for success." Each of these terms is further defined by the Small Business Act, regulations promulgated by the Small Business Administration (SBA), and judicial and administrative decisions. A "business" is generally a for-profit entity that has a place of business located in the United States and operates primarily within the United States or makes a significant contribution to the U.S. economy by paying taxes or using American products, materials, or labor. A business is "small" if it is independently owned and operated; is not dominant in its field of operations; and meets any definitions or standards established by the Administrator of Small Business. Ownership is "unconditional" when it is not subject to any conditions precedent or subsequent, executory agreements, or similar limitations. "Control" is not the same as ownership and includes both strategic policy setting and day-to-day administration of business operations. Members of certain racial and ethnic groups are presumed to be socially disadvantaged, although individuals who do not belong to these groups may prove they are also socially disadvantaged. To be economically disadvantaged, an individual must have a net worth of less than $250,000 (excluding ownership in the 8(a) firm and equity in one's primary residence) at the time of entry into the program. This amount increases to $750,000 for continuing eligibility. In determining whether an applicant has good character, SBA looks for criminal conduct, violations of SBA regulations, or debarment or suspension from federal contracting. For a firm to have "potential for success," it generally must have been in business in the field of its primary industry classification for two years immediately prior to applying to the program. However, small businesses owned by Indian tribes, Alaska Native Corporations, Native Hawaiian Organizations, and Community Development Corporations are eligible for the 8(a) Program under somewhat different terms. The 8(a) Program has periodically been challenged on the grounds that the presumption that members of certain racial and ethnic groups are disadvantaged violates the constitutional guarantee of equal protection. The outcomes in early challenges to the program varied, with some courts finding that plaintiffs lacked standing because they were not economically disadvantaged. Most recently, a federal district court found that the program is not unconstitutional on its face because "breaking down barriers to minority business development created by discrimination" constitutes a compelling government interest, and the government had a strong basis in evidence for concluding that race-based action was necessary to further this interest. However, the court found that the program was unconstitutional as applied in the military simulation and training industry because there was no evidence of discrimination in this industry.

Small Business Administration 8(a) Program

Author: Gregory Kutz
Publisher: DIANE Publishing
ISBN: 1437933432
Category : Business & Economics
Languages : en
Pages : 53

Book Description
The Small Business Admin. (SBA) helps socially and economically disadvantaged small businesses gain access to federal contracting opportunities through its 8(a) program. To participate, firms must be at least 51% owned and controlled by an individual who meets SBA's criteria of socially and economically disadvantaged. The firm must also qualify as a small business. Once certified, 8(a) firms are eligible to receive sole-source and set-aside contracts for up to 9 years. This report: (1) determined whether ineligible firms are participating in the 8(a) program; (2) proactively tested SBA's controls over the 8(a) application process; and (3) determined what vulnerabilities, if any, exist in SBA's fraud prevention system. Charts and tables.

The 8(a) Pilot Program for Disadvantaged Small Businesses Has Not Been Effective

Author: United States. General Accounting Office
Publisher:
ISBN:
Category : Public contracts
Languages : en
Pages : 68

Book Description

H.R. 863, to Amend the Small Business Act

Author: United States. Congress. House. Committee on Small Business. Subcommittee on SBA and SBIC Authority, Minority Enterprise, and General Small Business Problems
Publisher:
ISBN:
Category : Minority business enterprises
Languages : en
Pages : 476

Book Description

Small Business

Author: United States. General Accounting Office
Publisher:
ISBN:
Category : Minority business enterprises
Languages : en
Pages : 58

Book Description

The 8(a) Program

Author: Steven Koprince
Publisher:
ISBN: 9781689155380
Category :
Languages : en
Pages : 185

Book Description
The 8(a) Business Development Program offers extraordinary benefits to disadvantaged small businesses, including set-aside and sole source government contracts. But the 8(a) Program's rules are complex, and business owners can grow frustrated trying to understand and comply with them.In this GovCon Handbook, government contracts attorney Steven Koprince demystifies the 8(a) Program. Written in plain English and packed with easy-to-understand examples, this GovCon Handbook will help 8(a) applicants and participants take full advantage of the 8(a) Program.

H.R. 5612, Amend the Small Business Act to Extend the Current SBA 8(a) Pilot Program

Author: United States. Congress. Senate. Select Committee on Small Business
Publisher:
ISBN:
Category : Federal aid to minority business enterprises
Languages : en
Pages : 216

Book Description