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What benefits are available to women or minority entrepreneurs in the US?
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Hope it helps:
Taking Advantage Of Minority Business Programs
By Mybrotha.COM Staff Writer - February 3, 2006
What is an 8(a) business?
The Small Business Administration (SBA) defines an 8(a) business as a minority-owned, small disadvantaged business which is unconditionally owned and controlled by one or more socially and economically disadvantaged individuals. For decades, this program has helped thousands of minority-owned business secure millions in grants and federal contracts.
The program gets its name "8(a)", from the section it occupies in the Small Business Act. This business development program was created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.
The requirements for qualifying as an 8(a) business are:
- The business must be a small business (Less than 500 employees, annual receipts may not exceed $2.5 million U.S dollars).
- The business must be unconditionally owned by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States. The owner and business must demonstrate potential for success.
Who are socially disadvantaged individuals?
Socially disadvantaged individuals are those who have been subjected to racial and/or ethnic prejudice or cultural bias because of their physical identity. The condition of being "socially disadvantaged", must stem from circumstances beyond their control. In the absence of positive evidence, individuals who are members of the following groups are presumed to be socially disadvantaged:
- Black Americans
- Hispanic Americans
- Native Americans
- Asian Pacific Americans
- Members of other groups designated by the SBA
At the very least, 51% of your business must directly and unconditionally owned by socially and economically disadvantaged individual.
Okay, so what are the benefits of being an 8(a) business?
The 8(a) Program has become an essential part of securing federal contracts for businesses that may otherwise be left out of the loop. The SBA helps socially and economically disadvantaged business-owners gain access to the federal procurement market and other avenues within the American economy. This is accomplished through a multitude of business development programs such as the Industry Mentor-Protege Program, and Small Business Development Centers (SBDC).
How do I get started?
Though it may be helpful, you won't need a superstar grant-writer to write your 8(a) application. The SBA has designed the application so that the applicant can complete it by answering pertinent business and personal questions. The application process is intended to assure fairness, and usually takes 15 days to review and an additional 3-months for a final decision.
For additional information regarding the 8(a) Certification process, please contact your SBA District Office which may be located at the Chamber of Commerce, or a Business Outreach Center. To locate the SBA District Office nearest you, please call 1-800-U-ASK-SBA or visit: www.sba.gov
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