A small disadvantaged business is one that meets the following criteria:

• The small business is at least 51% owned and controlled by a socially and economically disadvantaged individual or individuals. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans may be presumed to quality. Other individuals can qualify if they show by a "preponderance of the evidence" that they are disadvantaged.
• All individuals who own or control the business must have a net worth of less than $750,000, excluding the equity of the business and primary residence.
• The business must also meet applicable size standards for small businesses in their industry

This is a self-certification recorded in the Central Contractor Registration (CCR).

8(a) Business Development Program

The goals of the 8(a) Business Development Program (Sec. 204 of Public Law 100-656) are to foster the success and growth of socially and economically disadvantaged businesses so that they can eventually compete without assistance. This goal is accomplished by providing eligible businesses priority for receiving federal procurement contracts through the use of set-asides and noncompetitive awards.

To be eligible for this program, a business must satisfy three tests and apply for 8(a) certification.

• A small business must be at least 51% owned and controlled by a socially and economically disadvantaged individual or individuals. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans may be presumed to quality. Other individuals can qualify if they show by a "preponderance of the evidence" that they are disadvantaged.
• All individuals must have a net worth of less than $250,000, excluding the equity of the business and primary residence.
• A business must also meet applicable size standards for small businesses in its industry

The following is a list of benefits of participating in the 8 (a) Business Development Program.

• Participants can receive sole-source contracts, up to a ceiling of $4 million for goods and services and $6.5 million for manufacturing. While the SBA helps the 8(a) firms build their competitive and institutional know-how.
• 8(a) firms are also able to form joint ventures and teams to bid on contracts. This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one large contract. Also, see the Mentor-Protégé Program for more information on allowing starting 8(a) companies to learn the ropes from other experienced 8(a) businesses.

Additional information:

• SBA 8(a) Business Development Program
• 13 CFR 124
• FAR 19.8
• FAR 19.12