SBA aims to boost number of 8(a)s

Sets goal of increasing number of 8(a) firms by 5% in FY2016

The Small Business Administration has set a goal of increasing participation in the 8(a) Business Development Program by 5% in fiscal 2016, and another 5% in fiscal 2017, officials told Set-Aside Alert.

The nine-year free program offers training, assistance, preferences in federal contracting, and access to a robust mentor-protege program.

However, the number of firms participating in the nine-year program has shrunk. Jackie Robinson-Burnette, associate administrator for business development at the SBA, told Set-Aside Alert in an emailed statement that 8(a) enrollment has fallen steadily from 6,252 firms in 2012, to 4,706 firms as of Dec. 15, 2015.

Several factors have contributed to the reduction, including the graduation of many firms that have completed the program, she wrote. In addition, many have withdrawn voluntarily for personal or business reasons.

“While we continue to see strong interest in the 8(a) program across the country, the number of newly-certified firms has not kept pace with the number of firms exiting the program over the last few years,” Robinson-Burnette wrote.

Another reason for the drop in enrollment is likely that the 8(a) application process is considered to be burdensome, she added. That assessment was based on customer and stakeholder feedback.

To address this issue, the SBA in May 2015 reviewed the application process and now is re-engineering the process and streamlining the paperwork, she added.

The SBA has set a goal to increase the total number of certified 8(a) firms by 5% in fiscal 2016 and another 5% in fiscal 2017, Robinson-Burnette told Set-Aside Alert.

“Our new efforts to make the program more accessible for eligible firms should help reverse the historical decline in the portfolio,” she added. The goal is expected to be published on Performance.gov shortly.

Editor’s Note: Set-Aside Alert published 8(a) enrollment figures in the Dec. 18 edition from the SBA’s Dynamic Small Business Search. Those figures included joint ventures. The 8(a) enrollments cited by Robinson-Burnette do not include joint ventures.

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