Maintain your old Siemens Hipath system

SBAs 8(a) Program Can Help Some Companies Compete

Q: A friend told me that as a woman of Native American descent I might be eligible for a special SBA program that will help me start a small business. He said I could compete for government contracts through this program. Can you tell me what SBA program he's referring to? -- Clara P.

A: Your friend is probably referring to the Small Business Administration's (SBA) 8(a) Business Development (BD) Program. The 8(a) Program (named after the section of the Small Business Act from which it comes) is an SBA program created to help small disadvantaged businesses better compete in the U.S. marketplace and within the arena of government procurement. The SBA provides business development, technical assistance and other services to the small businesses that are accepted into the 8(a) program.

The 8(a) program is reserved for what the SBA calls "socially disadvantaged individuals." Socially disadvantaged individuals are defined as those who have been subjected to racial or ethnic prejudice or cultural bias because of their membership in a disadvantaged group.

The SBA has designated the following groups as socially disadvantaged:

· Black Americans · Hispanic Americans · Native Americans (Native American Indians, Eskimos, Aleuts, and Native Hawaiians) · Certain Asian Pacific Americans · Other individuals who can prove that they meet the SBA's criteria to be considered socially disadvantaged

One point where your friend is incorrect is that the 8(a) program is for new companies. The 8(a) program is primarily for companies that have been in business for a minimum of two years, though that rule may be waived if your company is able to meet some pretty strict management, financial, and performance criteria.

Obtaining 8(a) status is no guarantee that a company will be successful in obtaining government or other contracts, but it certainly doesn't hurt. The Small Business Act mandates that all small businesses have the opportunity to provide goods and services to the U.S. government. To help ensure that mandate, the SBA negotiates annual procurement preference goals with every Federal agency and reviews each agency's results to make sure the goals were met.

The statutory goals are: 23 percent of all prime contracts go to small businesses; 5 percent of prime and subcontracts for small disadvantaged businesses; 5 percent of prime and subcontracts for women-owned small businesses; 3 percent of prime contracts for HUBZone small businesses; and 3 percent of prime and subcontracts for service-disabled veteran-owned small businesses.

A HUBZone (Historically Underutilized Business Zone) is a designated area within urban and rural communities that has been given preferential contract award consideration in an effort to stimulate economic development. A company may qualify for HUBZone status if it is owned or controlled by one or more U.S. citizens, has at least 35 percent of employees who live within the designated zone, and has a principal office located there. HUBZones are a whole 'nother topic that we can discuss at another time. Suffice it to say that a company that obtains both 8(a) and HUBZone status may be entitled to double dip in the government procurement trough, that's why you often find a number of 8(a) companies specifically moving into HUBZone areas to take advantage of the perks both programs offer.

The U.S. government purchases billions of dollars in goods and services every year, everything from staples to those wonderfully expensive toilet seats. Obtaining 8(a) status allows small businesses to compete for a portion of that business.

The basic requirements for applying for 8(a) status are your company must be a small business as defined by the SBA, must be owned and controlled by one or more socially and economically disadvantaged individuals who are U.S. citizens, and must show a potential for success. The SBA defines a small business as "one that is independently owned and operated, is organized for profit, and is not dominant in its field."

As expected, the 8(a) program has its fans and its detractors. It's fans are those companies that obtain 8(a) status and thereby get preferential treatment when competing for government procurement contracts.

The program's detractors are typically those companies that fail to obtain 8(a) status or that do not meet the definition of socially disadvantaged, i.e. businesses owned my white American males (that's a can of worms we won't open this week).

You can learn more at the SBA's website (sba.gov) or by calling your local SBA office.

Here's to your success!

Tim Knox

Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox. Tim serves as the president and CEO of three successful technology companies and is the founder of DropshipWholesale.net, an online organization dedicated to the success of online and eBay entrepreneurs.

Related Links:
http://www.prosperityandprofits.com
http://www.dropshipwholesale.net

In The News:

'Alter your course': Audio of moment Iranians warn UK-flagged tanker
Sun, 21 Jul 2019 07:06:00 +0100
New audio has been released of the Iranian Revolutionary Guard and the Royal Navy both giving instructions to a UK-flagged tanker before it was "illegally" seized by Tehran.

Nine people killed in attack involving female suicide bomber
Sun, 21 Jul 2019 09:38:00 +0100
At least nine people have been killed and 30 others were injured in Pakistan after a complex attack involving a suicide bomber, believed to be a woman wearing a burqa.

Woman 'decapitates mother' as four-year-old boy looks on
Sun, 21 Jul 2019 07:30:00 +0100
A woman has been charged with murder after allegedly decapitating her mother as a four-year-old relative looked on.

Nine injured as 1,000 firefighters battle wildfires in Portugal
Sun, 21 Jul 2019 10:28:00 +0100
About 1,000 firefighters are tackling wildfires spreading in east Portugal, which have injured at least nine people.

New Zealanders hand back 10,000 weapons in gun amnesty
Sun, 21 Jul 2019 10:18:00 +0100
New Zealanders have handed in more than 10,000 guns, weapons and accessories during the first week of an amnesty buy-back scheme.



tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Creating a Paperless Office

When working from home, it is usual to find that... Read More

Have You Thanked Your Competitors Today?

Competition in the business world is often viewed as a... Read More

Comparing Boston Area for a mobile car wash business

The Boston suburbs seem to be rich with possible locations... Read More

SBIR vs STTR

SBIR vs. STTR: If you are participating in the SBIR... Read More

The Advisory Board: A Business Owners Most Valuable Resource

As a company grows, the owner's role begins to change.... Read More

Success Tips for Small Business Owners

Running a small business requires many skills. However, to do... Read More

How To Make Sure Your Customers Still Trust Your Small Business

The stock market is still on a wild roller coaster... Read More

How to Use Graphs and Charts in Your Business Plan

Many people ask how many graphs or charts they should... Read More

Mobile Pressure Washing and Cleaning Scheduling

If you own a mobile car washing, pressure washing or... Read More

Small Business Pricing Strategies

TACTIC #1 -- Never simply slash your prices, unless you're... Read More

Beating the Small Business Cash Flow Blues

Small business owners can relieve a lot of their own... Read More

Its Spring - Time For A Compensation Program Tune Up

Now that winter has passed, the annual ritual of spring... Read More

Book Yourself Solid Key #5: Go Forward With Gusto & Articulate What You Do

Want your small business to flip instead of flop?! Statistically... Read More

Are You Using a Chess or Checkers Small Business Marketing Strategy?

Until the day I learned to play chess I loved... Read More

Starting Your Small Business

Where do you find more customers?How do you compete with... Read More

Secrets of Cleaning Truck Trailers in Your Fleet from a Veteran Truck Washer

Cleaning the trailers towed by big trucks is not easy,... Read More

Seven Common Mistakes Made By Small Business Owners

Most new small businesses won't be in business this time... Read More

10 Best Practices to Consider as Your SBIR Negotations Approach Contract Signature

10 Best Practices to consider as your SBIR negotiations approach... Read More

Three Small Business Secrets to Getting More Billable Time

As small business owners we're in business to make money... Read More

Pressure Washing Heavy Equipment

One of the best ways to make money in the... Read More

Arranging Your Fundraiser

When deciding to host a fundraiser for your company or... Read More

Computer Tips that Help Small Businesses Operate Profitably

When working properly, computers enable small businesses to make big... Read More

How To Get Slightly Famous in Print

Early in my career, I wrote an article for a... Read More

Small Business 101: Deadly Ignorance

American small business is again in transition. Many employees, now... Read More

Pressure Washing Aircraft Hangers at the Airport

If you are looking for a way to own your... Read More