8(a) Business Development Program (8(a))

SBA runs the program under 13 CFR part 124 and certifies firms through its free portal at certifications.sba.gov. A firm must be small, at least 51% unconditionally owned and controlled by disadvantaged U.S. citizens (or by a tribe, ANC, NHO, or CDC), show good character, and show potential for success, normally two full years of revenue in its primary industry. Economic disadvantage means personal net worth under $850,000 excluding the firm and home equity, average adjusted gross income of $400,000 or less over three years, and total assets of $6.5 million or less. The term is nine years: a four-year developmental stage and a five-year transitional stage. Individuals may use their eligibility once.

Social disadvantage changed in 2026. A final rule published August 11, 2026 and effective September 10, 2026 removed the presumption that members of designated groups are socially disadvantaged. Individual applicants must now show under 13 CFR 124.103(c) that a governmental or private entity discriminated against or disfavored a group they belong to, and self-certify membership and material harm. The rule applies to every individually owned applicant not yet admitted, including pending applications. SBA says current participants do not have to reestablish social disadvantage, and entity-owned firms are unaffected.

Contracts above $8.5 million for manufacturing and $5.5 million for everything else must generally be competed among 8(a) firms (FAR 19.805-1, FAC 2026-01). Below those levels an agency can award sole source.

Apply only when the firm has two years of revenue and federal customers in view, because the nine-year clock starts at approval and cannot be restarted. During the transitional stage SBA sets non-8(a) revenue targets, so plan commercial or open-market work early. If you are applying now, budget time to document the 124.103(c) showing: an application prepared under the old presumption will not carry the social-disadvantage element.