8 (a) Certification versus SDB Certification

In the procurement of products and service, federal agencies often have set-aside projects to be allocated to 8 (a) or 'small disadvantaged businesses' (SDBs). The Small Business Administration (SBA) has program guidelines as well as applications on its web site www.sba.gov for businesses to fill out in order to qualify for certification in these programs. There are separate certification applications for each form of business, such as sole proprietorship, corporations, etc.

Business owners who request certification under either or both programs must be qualified as a "small business" under SBA's guidelines.

The 8 (a) Small Business Administration Program

8(a) is a business development program that offers a broad scope of assistance to firms that are owned or controlled by individuals who are socially and economically disadvantaged. The 8(a) program is designated for business owners, who feel they have been subjected to racial or ethnic prejudice or culture bias because of their identities as members of groups, without regard to individual qualities. Certified firms are eligible to participate in procurements that have been set-aside only for this group.

Small Disadvantaged Business (SDB)Certification Program

SDB strictly pertains to benefits in Federal procurement. Firms designated 8 (a) automatically qualify for SDB certification. When competing for government contracts, SDBs in industries that show the ongoing effects of discrimination will be able to receive a ten percent price evaluation adjustment over non-disadvantaged business owners.

If non-minority females can show a pattern of discrimination in education, employment and business history, they are eligible to apply for 8 (a) and SDB. However, the argument is theirs to prove, no assumptions are considered.

An 8(a)/SDB comparison/contrast chart is attached. It is fairly self explanatory except for:

• Opposite "Economically Disadvantaged" are the amounts $250,000 for 8(a) and $750,000 for SDB.
• An individual can not have a personal net worth that exceeds these amounts, excluding their residence and the assets of the business.
• Opposite "Certification Term" is shown "9 years period" which means you can not obtain 8 (a) certification for longer than 9 years. However a person may submit an application for SDB certification every 3 years and be certified indefinitely.
• "Price Evaluation Adjustment" is shown as 10% for SDB certification. Where mandated, qualified SDBs receive up to a 10% price evaluation adjustment on procurements. This means all non-SDB qualified bidders will have up to 10% added on to their bids.

SCORE and SBA counselors are available to assist qualified business owners with filling out these certification forms.

8(a)/SDB Comparison/Contrast Chart