Eligibility Requirements for the 8(a) Program

Your business must meet certain eligibility requirements to qualify for the 8(a) Business Development Program. These requirements are some of the hardest for all Government Certification programs to meet. 

1. The business must be 51% owned and controlled by a socially and economically disadvantaged individual.
2. The primary applicant must hold the highest officer position and also must be highest compensated.
3. The primary applicant must hold a license or professional certifications required to operate the business.
4. The 51% owner must be a US citizen and also reside permanently in the US.
5. The following individuals are presumed socially disadvantaged:
   • African Americans
   • Hispanic Americans
   • Asian Pacific Americans
   • Native Americans
   • Subcontinent Asian Americans
6. Demonstration of economic disadvantage is based on:
   1. Have a personal net worth of $850 thousand or less.
      1. Excludes equity/ownership in this business, primary personal residence, and any funds invested in retirement accounts or IRAs.
      2. If the applicant is married or the asset is jointly held, the split value 50/50.
   2. Personal income must not exceed $400,000.00, averaged over three years.
   3. Total assets must not exceed $6.5 million.
7. Primary residence and equity/value of business is included.
8. Retirement accounts/IRAs are not included.
9. The applicant individual must devote full-time hours to the applicant’s business during normal business hours. Cannot have outside employment during regular business hours.
10. The business must have generated revenue during the preceding two years and must be able to provide letters of reference for recent successful contract performance.
11. Financial Statements must exhibit positive net income, positive net equity, and positive working capital at the time of application submission.
12. 70% or more of the firm’s revenue cannot be derived from just one client UNLESS that customer is the Federal Government and the applicant is the prime contractor.
13. 50% or more of the firm’s revenue cannot be derived from subcontracts.
14. Applicant cannot have been convicted of a crime/felony.
15. All federal debts must be paid.