The SBA 8(a) and SDB Programs - Frequently Asked Questions
 
 


 

 

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FREQUENTLY ASKED QUESTIONS  :: These are answers to typical questions asked by candidates considering application to the Small Business Administration's 8(a) and/or Small Disadvantaged Business (SDB) Programs.  If you are ready to proceed with an order, go on to the Service Levels page.
 

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1. What is the difference between the 8(a) BD and SDB Programs?

Both programs exist to assist businesses owned and controlled by participants who qualify as socially and economically disadvantaged.  However, each provides a different set of benefits.  The 8(a) Program provides access to contracts and business development assistance, while the SDB Program focuses only on providing access to contracts.  Furthermore the mechanisms for awarding contracts under the 8(a) Program are different from those applied under the SDB Program.  Finally, 8(a) Program participants automatically belong to the SDB program, but SDB Program participants are not necessarily members of the 8(a) Program.  Visit our 8(a) and SDB pages for more information. 
 

2. Are the SDB and 8(a) BD Programs Available Only to Minority-owned Companies?

No.  The standard for participation in these programs is based on social and economic disadvantage.  Although racial and ethnic status are important in analyzing social and economic disadvantage, they are by no means absolute.  In recent years, government agencies have emphasized regulations that encourage applications by women-owned, disabled-owned, veteran-owned and other small businesses whose owners qualify as socially and economically disadvantaged.  The SBA requires you to document how you are socially and economically disadvantaged in your application.
 

3. What Does it Mean to be Socially and Economically Disadvantaged?

In general, socially disadvantaged individuals are those who have been subjected to racial, ethnic, or cultural bias within American society.  Economically disadvantaged individuals are socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged.  A central goal of the 8(a) and SDB application process is to determine whether an applicant is socially and economically disadvantaged.
 

4. Is There a Way to Determine My Chances of Participation in the Program Before I Begin the Application Process?

Yes.  Use the Basic Eligibility Survey to determine whether there are any significant potential problems with your eligibility.  If you require further assistance in determining your eligibility, our office can provide an in-depth, personalized eligibility consultation by telephone to see if you qualify.  You can take the Basic Eligibility Survey by clicking here.
 

5. How Do I Obtain Application Materials for the SDB and/or 8(a)BD Programs?

Federal Access now provides a full set of SDB and / or 8(a) application forms with this service.  Our application package includes step-by-step instructions, plus all the supplemental documents you will need to complete your application for submission to the appropriate SBA office.  Visit our page on 8(a)/SDB Service Levels for more information. Also, please refer to Question 6, below.
 

6. What is the Difference Between "Electronic" and "Paper-based" 8(a)/SDB Applications?

In September 2004, the SBA introduced an online application system for processing 8(a)/SDB applications.  This online application system is the result of several years of work to streamline the perplexing information-gathering steps required by regulation to evaluate 8(a)/SDB applications.  The online system facilitates easier processing by the Government and quicker responses to application submissions.  However, the regulatory requirements for 8(a)/SDB eligibility have not been altered for online applications.  This means that the high risk of rejection faced by most applicants has not changed.  Federal Access will assist you in properly completing the online process to eliminate any risk of having your application rejected.  Visit our page on 8(a)/SDB Service Levels for more information. 
 

7. Does it Help to Use Software-Generated Application Forms in Preparing an Application?

Software-generated forms may assist in organizing your application materials.  However, with the availability of an online "electronic application," the value of purchasing a software package to assist your application is diminished.  Keep in mind, however, that there is no substitute for the time and effort it takes to prepare and assemble the detailed narratives, explanations and supplemental documents required by the SBA to be submitted along with your application.  Federal Access provides legal review of software-generated forms (regardless of format) at no extra charge.
 

   
8. How Do the New 8(a) / SDB Application Forms Differ From the the Old Ones?

The SBA has recently introduced a new combined 8(a) / SDB application form.  The new form is designed to standardize the application assembly process for the two programs.  It also discourages fraudulent applications by eliminating the ability to generate "canned" responses to  the questions asked by the SBA to evaluate program eligibility.  The effect of this change has been to increase the challenge of presenting a substantive case for admission to the SDB and/or 8(a) program.  The legal review services offered by Federal Access go beyond simple application packaging to assist you in presenting a  strong substantive case for admission to the SDB or 8(a) program.
 

9. Does Federal Access Review the Narratives, Explanations and Supplemental Documents Required by the SBA as Part of this Service?

Yes.  The SDB and 8(a)BD Programs both require applicants to submit narratives, explanations, certifications and supplemental documents as part of the application process.  These additional materials are required to assist the SBA in determining your eligibility for program participation.   As part of our consultation service we will conduct a thorough legal review of all application attachments to ensure that they meet the requirements of the SBA.  We also offer document preparation services (e.g. social and economic disadvantage narratives) for applicants who need assistance in this area.  Contact us if you are interested in our document preparation services.
 

10. What Standard of Care Should I Use in My Submission of Information to the Government?

The SBA and other government agencies hold your company to a high standard of accountability regarding the veracity of the documents constituting your application.  Your SDB or 8(a) application documents are retained by the SBA, and can be accessed by agency officials as needed.  Also, your status as an SDB or 8(a) company may be challenged by any interested party pursuant to program eligibility regulations.  Any false, misleading or fraudulent statements submitted under your application may trigger criminal penalties or civil damages under the Program Fraud Civil Remedies Act.  False statements also place your company at risk for de-certification or debarment from all opportunities to do business with the Federal government.  It is important to complete your application forms accurately, truthfully, and with a good understanding of the legal ramifications.
 

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